Technical Wrap - March 17, 2022 - HDFC Securities

Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

The sharp upside momentum continued in the market for the second consecutive sessions on Thursday and Nifty closed the day with hefty gains of around 311 points. After opening with a massive upside gap of 227 points, the market shifted again into a small intraday range movement for better part of the session. Minor intraday volatility was seen towards the end and Nifty closed near the highs.

A long bull candle was formed on the daily chart with gap up opening, which is back to back for the second consecutive sessions. The opening upside gaps of the last two sessions remains unfilled. Technically, this indicate a sharp trended upmove in Nifty and one may possibly expect another opening gap up by next week.

The significant overhead resistance of 16800-17000 levels (resistance of uptrend line, as per change in polarity, previous multiple swing lows and opening downside gap of 24th Feb) has been broken decisively on the upside on Thursday and Nifty closed above it. This market action could be considered as a sharp upside breakout of important hurdle and this is likely to have further positive impact on the market ahead.

Previously, the area of 16800-17000 level has acted as a strong support for the market in past and the recent downside breakout of it has resulted in a 1000 points decline in short span of time. Hence, present decisive upside breakout of this area could indicate continuation of sharp upside momentum for the near term. The potential upside targets to be watched around 17800-18000 levels in the next few weeks. Immediate support is placed at 17050 levels.

Source : Equity Bulls

Keywords

TechnicalWrap HDFCSecurities Sensex Nifty