Technical Wrap - February 17, 2022 - HDFC Securities

Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After showing range bound action with high volatility on Wednesday, the market continued with similar action on Thursday and closed the day lower by 17 points. After opening on a positive note, the market made an attempt to move up in the early part of the session. The market witnessed roller coaster ride like intraday swing highs and lows during the day and finally closed near the lower end of the day.

A small negative candle was formed on the daily chart with minor upper and lower shadow. There is back to back formation of same candle pattern in the last couple of sessions. Technically, this pattern indicates a formation of another high wave type candle. The last two such formations are signaling high volatility in the market around 17500 levels.

The formation of lower top is still intact and a sustainable move above 17650 levels could negate this bearish pattern and that open more upside for the market ahead (down sloping trend line). Inability to move above 17650 levels, one may expect another round of downward correction in the market and could slide down to the lows of around 17000-16800 levels.

Conclusion:The short term trend of Nifty continues to be choppy with high volatility and the similar movement is expected in the next session. A sustainable move only above 17650 levels is expected to bring bulls back into action. Immediate support is placed at 17150 levels.

Source : Equity Bulls

Keywords

TechnicalWrap HDFCSecurities Nifty