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NIFTY WEEKLY SUPPORT & RESISTANCE
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SUPPORT
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RESISTANCE
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S1
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S2
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S3
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R1
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R2
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R3
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CLASSIC
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17,475
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17,345.00
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17,263
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17,687
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17,769
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17,900
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Fibonacci
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17,476
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17,426.00
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17,345
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17,638
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17,688
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17,769
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Camarilla
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17,586
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17,566
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17,547
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17,625
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17,644
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17,664
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This week, nifty is struggling at 17,000 and the worst shares of SBI, Bank of Baroda, Can Bank are hitting new highs. Now Maruti is following suit. So someone is wrong with all those tom-toming midcap IT and how IT is the
only performer! Since we are experiencing growth, the market is adjusting to these higher rates and we cannot go without sync.
We have a good chance of returning to 18,000 next week. The results have been good and there is now enough cushion to handle the downside in IT, Pharma, and the metal index. From my perspective, we see 18,000 after next week's policy and we will take it from there. Earlier today, the market snapped three days of winning streaks and lost over 1.5% after US consumer prices came in hotter than expected. RBI surprised markets yesterday by keeping policy rates unchanged and deciding to maintain its accommodative stance despite high inflation.
US CPI Inflation: After the US
consumer price index came in higher than expected, Indian and global equity markets slumped, amid fears that the US Federal Reserve will raise interest rates aggressively to fight inflation.
RBI Policy: Yesterday, the Reserve Bank of India maintained key policy rates steady in the face of elevated inflation. Our view is that managing inflation, rates, and currencies simultaneously will be
difficult. The Fed is expected to raise the reverse repo by 100-110bps beginning in Q2 2022, due to increased inflation, currency depreciation, and US rate hikes.
Weakening Rupee: As a result of continued selling pressure by foreign
investors, the domestic currency fell to 75.38 per dollar in January and 1.17
per dollar in February.
"In our view, the RBI's dovish stance in the near term
with its focus on growth rather than inflation risk has a slight negative
effect on the INR for the following reasons:, In addition, the RBI's monetary
policy diverges significantly from that of major central banks, and its FX
stance could be seen as lagging behind inflation expectations”
