Technical Wrap - Feb 22, 2022 - HDFC Securities

Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After showing gradual weakness amidst a range movement in the last four sessions, Nifty displayed sharp weakness on the opening trade of Tuesday, and closed the day lower by 114 points amidst volatile movement. After opening with a huge downside gap of 359 points, the market has started to show gradual upside recovery from the lows after opening. The upside momentum has picked up in the later part and Nifty closed near the highs. The opening downside gap has been filled partially.

A long bull candle was formed on the daily chart after opening lower, which indicate a comeback of bulls from the lower levels. The crucial lower support of 16800 held again on Tuesday and resulted in an intraday upside recovery from the lows. This could be minor positive for the bulls to make a comeback.

The lower area of 16800 (previous lows, uptrend line connecting previous bottoms) has offered base for the Nifty again. At the same time, we observe a formation of consistent lower tops and repeated testing of this lower support. This could open up another round of minor upside to form another lower top before showing weakness from the highs.

Conclusion: The near term trend of Nifty continues to be weak. Having tested the crucial supports of 16800 levels again, one may expect minor upside bounce in coming session from here or from slightly lower levels. As per the pattern of lower tops, one may expect Nifty to tumble again from the highs of 17300-17400 levels in the next few sessions.

Source : Equity Bulls

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TechnicalWrap HDFCSecurities Nifty Sensex