Technical View - Feb 18, 2022 - HDFC Securities

Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

The choppy movement continued in the market for the third consecutive sessions on Friday and Nifty closed the day lower by 28 points. After showing a gradual intraday upmove in the early-mid part of the session, the market failed to sustain the gains in the second half and slipped into a gradual weakness and it finally closed the day near lower end of the day.

A small body of positive candle was formed on the daily chart with minor upper shadow. Technically, this pattern indicate a continuation of narrow range movement in the market. The negative candle of the last two sessions and upper shadow of Friday's candle signal an emergence of minor selling pressure around 17400 levels.

The negative sequence of lower tops is intact as per daily timeframe chart and the present range bound action could be continued as long as the recent lower top is protected at 17490 levels. Historically, the market has displayed sharp weakness from the lower/higher highs.

Nifty on the weekly chart placed at the significant trend line support around 17000 levels. The formation of upper and lower shadow in the small positive weekly candle indicate presence of high volatility in the market.

Conclusion: The short term trend of Nifty continues to be choppy. Inability of Nifty to sustain above 17500 levels could eventually result in a downward correction and that could possibly drag Nifty to retest a recent bottom of 16840 levels. Immediate support is placed at 17150 levels.

Source : Equity Bulls

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TechnicalView HDFCSecurities Nifty DailyWrap