Technical Wrap - April 6, 2023 - HDFC Securities

By Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities on today's market performance.

Nifty continued with upside momentum for the fifth consecutive sessions on Thursday and closed the day with decent gains of around 42 points amidst range bound action. After opening with a negative note, the market slipped into further weakness in the early part of the session. After the outcome of RBI's mid quarter policy meet around 10 am, the upside momentum picked up from the lows and Nifty finally closed near the highs.

A reasonable positive candle was formed on the daily chart with minor upper shadow. Technically, this pattern indicates a breather type movement in the market at the hurdle after a sharp upside movement from the lows recently.

Nifty is currently placed at the important resistance of previous opening downside gap of 10th March around 17600 levels. Nifty on the weekly chart formed a reasonable positive candle for the second consecutive week and placed at the crucial hurdle of down sloping trend line around 17600 levels. The short term trend of Bank Nifty remains intact. Minor consolidation is expected in the banking sector before showing a decisive upside breakout ahead.

Conclusion: The near term trend of Nifty is positive. Having placed at the hurdle, there is a possibility of further consolidation at the highs in the next week before showing a decisive upside breakout of 17600-17700 levels. Immediate support is at 17500.

Source : Equity Bulls

Keywords

TechnicalWrap HDFCSecurities Nifty Sensex