Technical Wrap - March 27, 2023 - HDFC Securities

Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

The high volatility continued in the market on Monday, post sharp weakness of Friday and the Nifty closed the day with modest gains of around 40 points. After opening with a positive note, the market showed upside with volatile intraday swing movements till afternoon. A sustainable intraday upside recovery of mid part has failed to sustain and Nifty closed near the lows.

An identical open-close candle was formed on Monday with long upper and lower shadow as per daily timeframe chart. This market action indicates a formation of doji type candle pattern. Normally, a formation of doji after a reasonable decline calls for a reversal of a down trend. But, the market is moving within a broader range and the pattern implication of doji could be less in the near term.

The short term trend of Nifty continues to be weak with high volatility. The market is showing lack of strength to sustain the highs. There is a possibility of Nifty revisiting the recent swing lows of 16800 is in the short term. Any attempt of upside bounce towards 17100-17150 levels could be a sell on rise opportunity.

Source : Equity Bulls

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TechnicalWrap HDFCSecurities Nifty Sensex