Technical Wrap - March 28, 2022 - HDFC Securities

Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

The range bound movement continued in the market for the sixth consecutive sessions on Monday and Nifty closed the day with modest gains of 69 points amidst high volatility. After opening on a positive note, the market slipped into intraday weakness in the early-mid part of the session. Sharp intraday buying has emerged from the crucial support of 17000 levels in the second half and the market finally closed near the highs.

A small body of positive candle was formed on the daily chart with long lower shadow. Technically, this pattern indicate a formation of bullish hammer type candle pattern. But, having moved in a narrow range movement for few sessions, such hammer pattern amidst range movement could be less predictive. However, the market action signal an emergence of buying from the lower range and also from a key lower support.

After a decisive upside breakout of important cluster resistance around 16800-17000 levels recently, the market showing inability of witness sharp follow-through action subsequently indicate a lack of strength of the bulls. On the other way, a continuation of range movement and repeated testing of important support of 17000 levels may not be a good sign for the market to sustain the highs.

The short term trend of Nifty continues to be a range bound. Emergence of buying interest from near the support of 17K mark could be a cheering factor for bulls to make a comeback. But, the sustainable upmove could only occur above 17500 levels, which could then open upside targets of around 17600-17800 levels for the near term.

Source : Equity Bulls

Keywords

TechnicalWrap HDFCSecurities Sensex Nifty