Last week – review
Last week, we focused on 61.8% retracement level on Nifty @ 17565 & Banknifty @ 39970, Indices tested lower level & on Friday closed below this important support level. This weekly closing is lowest closing since 24-Jan-23 (Hindenburg report on ADANI group stocks) & Budget on 1-Feb-23.
Approach on Technical: Nifty & Banknifty closed below 61.8% retracement level and is showing weakness on chart. Both indices are approaching their respective 200-DMA on Nifty @ 17368 & Banknifty @ 39216.
RSI & RSI average indicate oversold zone. In case of any sign of trend reversal, short covering rally could bring Nifty up to 18070 & Banknifty cold rally up to 41567 in an optimistic or positive triggers.
Market View & Strategy
What led to correction of around 2% – 3% on Indian & US Indices – strong US Economic data, mainly Core CPI, Core retail sales, Core PPI & Core PCE Price Index which has turned the sentiment towards more tight monitory policy.
We now would turn cautious and watchful inflation remains key concern and key central banks meeting in March 2023 starts from 10-Mar to 3-Apr 2023 and their focus has shifted to managing inflation.