Technical Wrap - March 23, 2022 - HDFC Securities

Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After showing an excellent upside recovery from the important support of 17K mark, Nifty failed to continue with follow-through upmove on Wednesday and closed the day lower by 69 points. After opening on a positive note, the market moved up in the early part and formed a new swing high at 17442 levels. It failed to sustain the highs and started to show weakness gradually. The decline amidst range movement continued for mid to later part of the session and intraday upside bounces in between have been sold into.

A long negative candle was formed on the daily chart after opening higher. Technically this indicates a presence of strong resistance around 17500 levels. However, the pattern of the last four sessions signal formation of alternative candle pattern of positive and negative, which ideally indicates a broader range movement around 17400-17000 levels.

Though, Nifty showed weakness on Wednesday, the overall market breadth was positive and broad market indices like mid cap and small cap segment of NSE have closed in the green.

The short term uptrend status of Nifty remains intact and the positive chart pattern like higher highs and lows is active as per daily timeframe chart. Further weakness from here could find strong support around 17100-17000 levels for the short term. A sustainable upmove above the immediate hurdle of 17500 levels could pull Nifty towards the next resistances of 17650 and 17800 levels respectively.

Source : Equity Bulls

Keywords

TechnicalWrap HDFCSecurities Nifty Sensex