Technical Wrap - March 31, 2023 - HDFC Securities

Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After showing a range bound action in the last few sessions, Nifty witnessed sharp upside breakout on Friday and closed the day with hefty gains of around 279 points. After opening with an upside gap of 130 points, Nifty continued its upside momentum for the whole session. There was an absence of reasonable intraday dips in between and the market closed at the highs.

A long bull candle was formed on the daily chart with unfilled opening upside gap. Technically, this indicates a decisive upside breakout of the hurdle of around 17200-17250 levels. After the formation of series of lower bottoms over the last few months, the Nifty has moved up sharply after the formation of double bottom type pattern around 16900 levels recently. This is positive indication.

Nifty as per weekly chart formed a long bull candle, which indicates a sharp reversal in the market on upside. After declining continuously for the last three months a doji type candle pattern was formed as per monthly timeframe chart. This is positive signal as per long term charts.

Bank Nifty has also moved up sharply on Friday. The overall bullish chart pattern in BN signaling an upside target of around 41650 in the next 1-2 weeks. Immediate support is at 40200 levels.

Conclusion: The short term trend of Nifty has turned up sharply. Having moved above the hurdle and the overall positive chart pattern indicates next upside for the Nifty around 17800 levels in the next couple of weeks. Immediate support is at 17250 levels.

Source : Equity Bulls

Keywords

TechnicalWrap Nifty Sensex HDFCSecurities