Technical Wrap - March 22, 2022 - HDFC Securities

Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After showing profit booking from the highs on Monday, Nifty witnessed an excellent upside bounce amidst volatility on Tuesday and closed the day higher by 197 points. After opening on a flat note, the market slipped into weakness in the early-mid part of the session. Sharp intraday buying has emerged from the lows of 17006 levels and the upside momentum further strengthened towards the later part and Nifty closed at the highs.

A long bull candle was formed on the daily chart, that has almost engulfed the long bearish candle of Monday. This is positive indication and signal a counter attack of bulls after one session of decline. Further upside from here (above 17355) could negate the bearish engulfing pattern formation of Monday.

After a decisive upside breakout of the important cluster resistance of around 16800-17000 levels recently, the present downward correction has halted at the previous broken resistance of 17000 levels and witnessed sharp upside bounce on Tuesday. This could be considered as a validation of recent upside breakout of the cluster resistance and it opens more upside for the short term.

The positive sequence like higher highs and lows is intact on the daily chart and Tuesday's swing low of 17006 levels could now be considered as a new higher bottom of the sequence. Hence, more upside is likely from here.

Conclusion: Nifty bounced back sharply after a small downward correction. The overall chart pattern indicate next upside of around 17500 in the short term and one may expect further upside targets of around 17800-18000 levels in the near term. Immediate support is placed at 17200.

Source : Equity Bulls

Keywords

TechnicalWrap HDFCSecurities Nifty Sensex