Technical Wrap - April 10, 2023 - HDFC Securities

Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

The upside momentum continued in the market for the sixth consecutive sessions on Monday, but the emergence of intraday selling has pushed the Nifty to close off the highs. After opening with a positive note, the market continued its upside momentum in the early to mid part of the session. Selling pressure has emerged around 17700 levels in the mid part and the market erased the intraday gains towards the end.

A small body of negative candle was formed on the daily chart with long upper shadow. This pattern indicates a tiredness of bulls at the crucial hurdle of 17600-17700 levels, which are opening downside gap of 10th March and down sloping trend line, connected from the top of Dec 22. This pattern could be a minor set back for bulls for the short term. There is a possibility of minor downward correction from the highs.

The bearish chart pattern like lower tops and bottoms is still active on the daily chart. But, the formation of higher bottom in the later part of March and a strong upside bounce from the lows could hint at a possibility of negation of this larger bearish setup of LT and LB in the near term. Bank Nifty has also reacted down from the crucial hurdle of 41200, which is also an opening down gap of 10th March.

Conclusion: The short term trend of Nifty remains positive. The presence of crucial overhead resistance and an emergence of minor weakness from the highs could indicate further consolidation or minor downward correction for the Nifty from near 17650-17700 levels in the coming sessions. Any dips from here could be a buying opportunity and Immediate support is at 17510 levels.

Source : Equity Bulls

Keywords

TechnicalWrap Nifty Sensex HDFCSecurities