Technical Wrap - Feb 17, 2023 - HDFC Securities

Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After showing weakness from the highs on Thursday, Nifty continued with follow-through decline amidst range movement on Friday and closed the day lower by 91 points. After opening with a negative note, the market made an attempt of upside recovery from the intraday lows in the early part of the session. It slipped into weakness from the highs and the negative trend with choppy movement continued till the end.

A small negative candle was formed on the daily chart with long upper and lower shadow. Technically, this pattern indicates minor reversal in the market from the highs. The minor degree positive chart pattern like higher tops and bottoms continued on the daily chart and present weakness could be in line with a new higher bottom formation. but, there is no confirmation of any higher bottom reversal yet at the lows.

Nifty as per weekly chart formed a small bull candle with long upper and lower shadow. After placing at the edge of upside breakout at the hurdle of 17800 levels in the last week, Nifty manages to close higher by half a percent by this week despite encountering hurdle at 18150 levels.

Conclusion: The short term trend of Nifty is choppy with weak bias. The present weakness has not damaged the near term uptrend status of the market so far and we expect chances of buying emerging from near the lower support of around 17800 levels in the coming week. On the higher side, the area of 18150 could act as a resistance.

Source : Equity Bulls

Keywords

TechnicalWrap HDFCSecurities Nifty Sensex