Technical Wrap - March 8, 2023 - HDFC Securities

Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After showing higher levels intraday weakness on Monday, Nifty shifted into a sustainable upside recovery on Wednesday after opening lower and closed the day higher by 42 points. After opening with a negative note, the market showed sustainable upside recovery from the lows in the early part of the session. Upside momentum got picked up again towards the end and Nifty closed the day with decent gains.

A long bull candle was formed on the daily chart with long lower shadow. Technically, this pattern indicates a buy on dips opportunity in the market. After reacting down from a crucial overhead resistance of 17800 levels (opening downside gap of 22nd Feb and weekly 10 and 20 period EMA) on Monday, the market subsequently showing upside bounces post small correction could be a positive indication.

The market could make an attempt to retest the key resistance again around 17800 levels in the short term. Such repeated testing of the hurdle could eventually result in decisive upside breakout of the hurdle in the near term. Immediate support is at 17600 levels.

Source : Equity Bulls

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TechnicalWrap Nifty Sensex HDFCSecurities