Week Ending 31st March 2023

Dear patrons, financial year 2023 ended on a bright note for the markets. The benchmark indices rose sharply by over 1.5% to close in the green for the month of March. The expiry for the month of March also saw decent up move in the indices on the back of short covering. Nifty managed to end the series with a psychologically important closing above 17000.

The week gone by was slow on the news front. As we mentioned in our previous blog, there was "no news" from the US and it remained "good news" for the markets globally. Almost every major market in the world gained significantly in the last week of March.

Domestically India's forex reserves saw a growth of around $ 6 bn to reach a total of $ 578.78 bn. The forex reserve are showing a rising trend for last couple of weeks and should continue to be positive going forward as India increases its clout in global economy through trade in the Rupee. Also the monthly collection of GST was in excess of Rs. 1.60 lakh crore, second highest since the introduction of GST. India's current account deficit also narrowed to about 2.2% of the GDP, which is likely to narrow further with the launch of new trade policy, providing impetus to exports.

Let's now try to figure out what is in store for us over the next week as far as the markets are concerned. 

As we can see, Nifty managed to take support around 16900 and moved upwards towards 17400. We had clearly mentioned in the last blog about these levels. You can read about it here Weekly Market Update: Week Ending 24th March 2023

We expect the indices to move northwards a bit more. Nifty faces hurdle around 17600 and may not be able to cross it in a hurry. Trend remains "sell on rise". Traders need to be cautious and should not get swayed by the up move. Any up move towards 17600 should be used to book profits and be ready with cash to be deployed in fall.

Bank Nifty also gained impressively last week. Bank Nifty consistently held its head above 39000 paving way for an up move, as we have been suggesting in our blogs. 40800 should act as immediate resistance for Bank Nifty, above which, a move towards 41400 may be visible.

All in all a truncated week should present opportunities on both sides. Traders need to be nimble footed. One should follow levels and adhere to stop losses strictly.

"Anticipate trend and benefit from it. Traders should go against human nature." ~ Rakesh Jhunjhunwala

Stay Invested!!!

Happy Investing!!!

P.S.: This communication is for educational purpose only and does not recommend buying or selling any stock or index. Trade at your own risk.