Technical Wrap - March 2, 2022 - HDFC Securities

Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After showing massive upside recovery from the lows on Monday, Nifty slipped into weakness amidst a range movement on Wednesday and closed the day lower by 187 points. After opening on a negative note, the market shifted into a gradual weakness in the early-mid part of the session. A slower upside recovery has witnessed in the later part and the Nifty closed the day by erasing some of intraday loss.

A small body of positive candle was formed at the lows with upper and lower shadow, which indicate a formation of doji or high wave type candle pattern. Technically, this market action displays high volatility in the market.

Normally, a formation of such candles after a reasonable upmove or down move could signal impending trend reversals. Having formed this candle within a high low range of Monday, the predictive value of this candle pattern could be less. Hence, this could be a part of narrow range movement at the hurdle of 16800 levels.

The formation of lower tops is intact on the daily chart and the Monday's high of 16815 could now be considered as a new lower top of the sequence. The crucial overhead resistance around 16800-17000 levels is intact as per the concept of change in polarity and this area is going to be a make or brake for the market ahead.

Conclusion: The market continued with choppy trend. Having, placed below the important resistance the upside recovery from the lows is lacking its strength. A decisive move below the immediate support of 16480 could open further weakness towards 16200 levels in the short term. A sustainable buying could emerge only above 17000 mark.

Source : Equity Bulls

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TechnicalWrap HDFCSecurities Nifty Sensex