Nifty prediction for March 16, 2023: Go short on a rise at 17,010

The sell-off in the Nifty 50 and Sensex continues. Both the indices are down about 0.55 per cent each today. Nifty is trading at 16,875 and Sensex at 57,240. The broader sentiment continues to remain negative.

Nifty has crucial support at 16,850. A break below it will accelerate the fall. Such a break can drag the index down to 16,600. In case the Nifty manages to bounce back from 16,850, a recovery rise to 17,100-17,200 can be seen again.

Stocks that will see action on March 16, 2023

Buzzing stocks: Patanjali Foods, NACL Industries, ITC, Sundaram Clayton, Ramkrishna Forgings, Titagarh Wagons, L&T Finance Holdings, Sarda Energy, Jaypee Infratech, Sunflag Iron, Mindspace REIT, NIBE, BLS International, Federal Bank

READ NOW

Global indices

All major Asian indices are in red. Nikkei 225 (26,940), Shanghai Composite (3,247), Kospi (2,370) and Hang Seng (19,245) are all down in the range of 0.5-1.5 per cent.

In the US, the Dow Jones Industrial Average (31,874) continues to fall. The overall picture is bearish as long as it trades below 32,000. The Dow Jones can fall to 31,000 in the coming days. Thereafter a reversal is possible.

Also read

The broad-based slide comes after weakness in global markets, on risks of contagion in the global financial sector, after Credit Suisse’s biggest shareholder said it could not provide the Swiss Bank with more funding.

Indian equities trade lower after Credit Suisse spooks Asian peers

SGX Nifty indicates a flat opening despite Asian markets rout

Analysts expect a possibility of bounce back in the later half of the day

READ NOW

Nifty 50 Futures

The Nifty 50 March Futures (16,960) is down 0.44 per cent. It has declined below the key support level of 17,020. The outlook is bearish. There is room for a fall up to 16,900-16,800 from here.

Resistances are at 17,020 and 17,100. A strong rise past 17,100 is needed for the Nifty 50 March contract to get a breather and rise. But considering the overall negative sentiment, a rise above 17,100 is less likely.

Credit Suisse to borrow up to $54 billion from Swiss National Bank to boost liquidity

Credit Suisse to pre-emptively strengthen its liquidity by borrowing from the Swiss National Bank up to CHF 50 billion under a Covered Loan Facility and a short-term liquidity facility

READ NOW

Trading strategy

Go short on a rise at 17,010. Keep the stop-loss at 17,080. Trail the stop-loss down to 16,990 as soon as the contract falls to 16,960. Move the stop-loss further down to 16,930 when the contract touches 16,910. Exit the shorts at 16,870.

Supports: 16,900, 16,800.
Resistances: 17,020, 17,100.

COMMENT NOW

Comments

Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.

Nifty prediction for March 16, 2023: Go short on a rise at 17,010