Technical Wrap - March 25, 2022 - HDFC Securities

Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

The range bound movement with weak bias continued in the market for the third consecutive session on Friday and Nifty closed the day lower by 69 points. After opening on a positive note, the market slipped into decline soon after the opening. The weakness with range movement continued for mid to later part of the session and minor upside recovery was seen towards the end.

A small negative candle was formed on the daily chart with lower shadow, which indicate a continuation of range bound action in the market. The Nifty has been moving with in a narrow high low range of 17400-17000 levels in the last five sessions. Technically, such range moves more often results in a decisive moves on either side (upmove above 17400 or down move below 17000 levels).

The overall chart pattern remains intact as per daily timeframe chart and the positive chart pattern like higher highs and lows is also active. But, close look at intraday chart signal decreasing strength in upside bounces from near the support of 17K mark in the last couple of sessions. The inability of bulls to continue with sharp follow-through upmove post upside breakout of significant 16800-17000 levels could also be another cause of concern as of now.

The underlying trend of Nifty continues to be range bound with weak bias. The broader uptrend status remains intact as long as Nifty sustains above 16800 levels. A decisive decline below this area is likely to trigger downward correction and a sustainable move above 17450 could open renewed buying interest in the market for next week.

Source : Equity Bulls

Keywords

TechnicalWrap HDFCSecurities Nifty Sensex