Technical Wrap - March 9, 2022 - HDFC Securities

Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After showing sharp upside recovery from the swing lows of 15671 levels on Tuesday, Nifty witnessed an excellent follow-through upmove on Wednesday and closed the day with handsome gains of around 331 points. After opening on a positive note, the market continued its sustainable upmove, which lasted for the whole session. Intraday minor dips in between have been bought into and the Nifty closed near the highs.

A long bull candle was formed on the daily chart, which is back to back for the second consecutive sessions. Technically, this pattern indicate a sharp upside reversal in the market from the lows. Hence, a recent swing low of 15671 could now be considered as an important bottom reversal pattern.

After the formation of doji and bullish engulfing pattern in the last two sessions, the sharp follow-through upmove was anticipated in the subsequent session. Nifty surpassed initial resistance of 16200 levels on Wednesday and is now placed at the another hurdle of 16450-16500 levels, as per the concept of change in polarity. This is positive indication and a sustainable move above 16500 levels, could pull Nifty towards another key resistance zone of 16800-17000 levels.

The negative chart pattern like lower tops and bottoms as per daily chart is intact. Nifty moving above the recent lower top of 16815 levels could negate this pattern and that could possibly change the near term trend status of the market towards up.

Conclusion: The short term trend of Nifty seems to have reversed up. The overall positive chart pattern signal a possibility of Nifty moving towards the important resistance of 16800 levels in the next few sessions. Immediate support to be watched at 16200-16150 levels.

Source : Equity Bulls

Keywords

TechnicalWrap Nifty HDFCSecurities Sensex BSE NSE