Anuj's Radar | Watch out for Bank Nifty today. Yesterday's low a sacrosanct support level

It appears that the market action on Thursday was not as bad as the index had suggested. One big question on the trader's mind is whether or not the Nifty has made a double bottom. To get a better understanding of the market, it will be important to watch the behaviour of the Bank Nifty today. In the last two days, the Bank Nifty has led the market's fall.

Some traders are looking towards China as the cleanest play for 2023. The Hang Seng has now rallied 45 percent in the past two months and this week it is up over 7 percent. Metal stocks may continue to rally in the coming months. Sentiment for the sector as a whole has improved significantly over the last few weeks now that economic activity in China is all set to pick up.

Looking at the Nifty outlook, yesterday's low of 17,892 was higher than the previous low of 17,774. On the upside, resistance is seen at 18,120. If the Nifty can cross this level, there could be a big short covering.

For the Bank Nifty, there was a bounce of 300 points from the lows. Yesterday's low of 42,298 is now considered a sacrosanct support level. On the upside, 42,800 will now act as resistance. It will be important to watch the price action in ICICI Bank. If ICICI Bank falls to its 200 day moving average, it could be a sign that the Bank Nifty could fall further.