Technical Wrap - April 3, 2023 - HDFC Securities

Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After witnessing a decisive upside breakout on Friday, Nifty shifted into a breather pattern with positive bias on Monday and closed the day with small gains of 38 points. After opening with a positive note, the market showed minor weakness with range bound action in the early part of the session. The second half saw an upside recovery from the lows and Nifty finally closed near the highs.

A small body of negative candle was formed on the daily chart with long lower shadow. Technically, this pattern indicates hanging man type candle formation (not a classical one). Nifty is currently placed at the hurdle of previous significant opening downside gap of 10th March around 17400 levels. The current chart pattern at the hurdle indicates minor consolidation pattern before showing further upside movement.

The underlying trend of Nifty as per small and long term chart remains positive. The sharp upside breakout of crucial hurdle at 17200 has witnessed so far and the bullish candlestick pattern was formed as per weekly chart in the last week. This is positive indication and signal more upside. The short term trend of Bank Nifty remains positive and the banking Index is expected to move towards the next overhead resistance of 41200 levels in the near term.

Conclusion: The short term trend of Nifty continues to be positive. The next upside levels to be watched around 17800 in the next 1-2 weeks. Immediate support is placed at 17300 levels.

Source : Equity Bulls

Keywords

TechnicalWrap HDFCSecurities Nifty Sensex