The Nifty 50 index lived on to fight another day above the mark of 17,000. The index briefly broke below that level on Tuesday, making a new low of 16,987. Although it did recover from those levels, it could not prevent a negative closing for the fourth straight session.

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From the March 8 high of 17,799, the index has now declined nearly 800 points.

Investor wealth worth nearly Rs 6.5 lakh crore has been wiped out over the last two trading sessions. The market capitalisation of BSE-listed companies is now at the lowest level since July 2022.

Five Nifty 50 constituents - Reliance Industries, Divi's Laboratories, Cipla, HDFC Life and Tata Consumer Products ended at or near their respective 52-week lows on Tuesday.

But the index may take some heart from the choppy yet positive close on Wall Street and look for a short-term bounce, as analysts are also calling the charts to be in oversold territory.

"The markets are telling you that the world is moving towards safety, not in terms of the US dollar but they're moving more towards the US T-bills as a means of safety. And if that happens, I think the markets are presaging a drop in interest rates, and therefore this logically should be good from an equity market standpoint," N Jayakumar of Prime Securities told CNBC-TV18 in an interview.

What do the charts suggest for Dalal Street?

Gautam Shah of Goldilocks wants investors to prepare for lower levels as he expects the trend to remain downwards despite pullbacks from time-to-time. "You will see pullbacks from time to time, no doubt about it, because the market will try to confuse, there are just too many things happening in the world at this point of time. But the trajectory will stay down and I think below 16 800 there are just no numbers till about 16,000. So for now, let's just prepare for that number and then we take it one step at a time," he said.

Ruchit Jain of 5paisa.com anticipates a pullback from the support zone of 17,000 - 16,820 for the Nifty 50. Therefore, he advises traders to keep a close watch on this range and trade with proper risk management. Immediate resistance on he upside is seen at 17,220, followed by 17,350.

The Nifty Bank tested a very crucial support level of 39,400 in intraday trading on Tuesday and managed to close just above that mark. Kunal Shah of LKP Securities has observed the formation of a doji candle on the daily chart, which indicates indecisiveness amongst the participants. In case the index manages to hold 39,400, Shah expects a pullback move towards levels of 40,000.

Here are key things to know about the market ahead of the trading session on March 15:

SGX Nifty

On Wednesday, Singapore Exchange (SGX) Nifty futures — an early indicator of the Nifty 50 index — gained 88.5 points or 0.52 percent to 17,200, thereby pointing to a positive opening for the market.

Global Markets

Markets in the Asia Pacific have opened higher, following a positive close on Wall Street overnight and a slightly cooler-than-expected US inflation report.

The Nikkei 225 has opened 0.5 percent higher, while the Topix is up 1.17 percent. South Korean indices, Kospi and Kosdaq are up 1.4 percent and 2.3 percent respectively after the country saw lower unemployment figures in February.

On Wall Street, the Dow Jones snapped a five-day losing streak to end with gains of 1 percent, while the S&P 500 and the Nasdaq gained 1.65 percent and 2.1 percent respectively.

For next week's FOMC meeting, traders are now pricing in a 86.4 percent probability of a 25 basis points rate hike.

What to expect on Dalal Street

The psychological level of 17,000 is the last ray of hope for a reversal in the short-term, according to Osho Krishnan of Angel One. With the market in oversold territory, he expects any improvement in the global market to act as an upside trigger. Krishnan sees 17,200 as an immediate resistance for the Nifty 50, followed by the 200-day moving average of 17,400 - 17,450. On the downside, strong support is seen at 17,000 - 16,900.

Nagaraj Shetti of HDFC Securities is observing the formation of a positive divergence on the daily Nifty chart and its Relative Strength Index, but sees no confirmation from the price. The short-term trend of the Nifty 50 remains weak with immediate resistance at 17,250 and support between 17,000 - 16,800.

Only a breakdown below 16,950 will now trigger a further correction on the Nifty 50, according to Rupak De of LKP Securities. On the higher end, he sees resistance between 17,150 - 17,200.

Key Levels To Track

For tomorrow's weekly options expiry, the 17,200 strike call of the Nifty 50 added 41.8 lakh shares in Open Interest, followed by the 17,100 call, which added 29.4 lakh shares.

On the downside, the 16,800 put added nearly 16 lakh shares, and the 17,000 put added 12.9 lakh shares in Open Interest. The 17,250 put saw Open Interest shedding of 16.8 lakh shares.

Nifty 50's put-call ratio is now at 0.69 from 0.71 on Monday.

Indiabulls Housing Finance is the new entrant to the F&O ban, joining GNFC, which remains in the ban period.

FII/DII activity

Long Build-up (Increase In Price and Open Interest)

Short Build-up (Decrease In Price and Increase In Open Interest)

First Published:Mar 15, 2023 6:06 AM IST