Technical Wrap - March 10, 2023 - HDFC Securities

Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After showing weakness from the highs on Thursday, Nifty slipped into follow-through declines on Friday and closed the day lower by 176 points. After opening with a downside gap of 146 points, Nifty continued with further weakness in the early part of the session. It later moved into a narrow high low band at the lows, which continued for rest of the session. The opening downside gap remains unfilled.

A small negative candle was formed on the daily chart with gap down opening and with long lower shadow. Technically, this pattern indicates a formation of hammer type candle pattern (not a classical one). Normally, such hammer formation post reasonable decline alert for trend reversal on the upside after confirmation. Nifty on the weekly chart formed a long bear candle this week after a minor upside bounce of last week.

Conclusion: The short term trend of Nifty continues to be weak. Having formed an unfilled downside gap and a formation of positive candle pattern of Friday indicates possibility of minor upside bounce for the market, which is likely to be a sell on rise opportunity for next week. Immediate resistance is around 17600 levels and the next lower supports to be watched at 17250.

Source : Equity Bulls

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TechnicalWrap HDFCSecurities Nifty Sensex