Closing Market Report - March 1, 2023 - Swastika Investmart Ltd

Santosh Meena, Head of Research, Swastika Investmart Ltd.

Because of the market's extreme oversold conditions on both the technical and derivative fronts, Nifty ends its eight-day losing streak. Nifty recovered its 200-DMA after a single day of decline, but 17625 and 17750 remain significant upside obstacles, and it must pass 17750 to show any real strength. Otherwise, it will continue to be vulnerable at higher levels.

We can see a double bottom formation on the Banknifty, which indicates a possible short-term bottom. However, the 20-DMA near 41000 will be a key resistance level, and if it succeeds in breaking through it, we can anticipate a short covering move in the direction of the 41500-42000 region. The market's strongest sector is capital goods, and associated companies could continue to outperform. Following a period of significant correction, PSU banking stocks are now experiencing buying interest.

Global cues will continue to fuel volatility in the near future, with US bond rates and the dollar index acting as major catalysts.

The behaviour of FIIs in the midst of the market's recovery will be intriguing to observe.

Source : Equity Bulls

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ClosingMarketReport SwastikaInvestmart Nifty BankNifty Sensex