Technical Wrap - March 6, 2023 - HDFC Securities

Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After showing a sustainable upside rally on Friday, Nifty continued with follow-through upmove on Monday and closed the day higher amidst range movement at the highs. After opening with an upside gap of 86 points, the market moved up further in the early part of the trade. It later shifted into range bound movement with weak bias at the highs, which continued till the end. The opening upside gap remains unfilled.

A small positive candle was formed on the daily chart with long upper shadow. Technically, this pattern indicates an emergence of selling pressure from near the overhead resistance of 17800 levels (opening downside gap of 22nd Feb and weekly 10 and 20 period EMA). Hence, a decisive move above 17800 levels is likely to bring more strength in the upside momentum of the Nifty.

Conclusion:The short term trend of Nifty continues to be positive. Having placed at the crucial overhead resistance of 17800 levels, there is a possibility of further consolidation or minor downward correction in the short term, before showing further upmove. Immediate support is placed at 17600 levels.

Source : Equity Bulls

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TechnicalWrap HDFCSecurities Nifty Sensex