Technical Wrap - March 14, 2022 - HDFC Securities

Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After showing consolidation type movement in the last couple of sessions, Nifty witnessed a sharp upmove on Monday and closed the day with decent gains of around 240 points. After opening on a flat note, the market shifted into an upmove in the early part of the session. A sustainable upside momentum continued for the whole session and Nifty closed near the highs.

A long bull candle was formed on the daily chart, after a smaller range movement for short term. Technically, this indicate a strength of an upside momentum in the market. The crucial overhead resistance zone of 16800-17000 levels have been challenged (Resistance of previous opening downside gap of 24th Feb. Trend line resistance as per change in polarity and multiple swing lows), as Nifty partially filled the opening downside gap. This is positive indication.

A sustainable move above 17000 levels could be considered as a sharp upside breakout of important resistance zone and that could also negate the negative sequence of lower tops and bottoms as per daily chart. On such circumstance (Nifty sustaining above 17K mark), the sharp upside towards 17500 could be ensued.

Conclusion: The short term trend of Nifty continues to be positive. The market is now showing an early signs of decisive upside breakout of cluster resistance of around 16800-17000 levels. A strong upside breakout could bring upper levels of 17500 in a quick period of time. Any failure to sustain above 16800 levels in the next 1-2 sessions could trigger another round of downward correction from the highs. Immediate support is placed at 16750 levels.

Source : Equity Bulls

Keywords

TechnicalWrap HDFCSecurities Nifty Sensex