Technical Wrap - Feb 21, 2022 - HDFC Securities

Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

The weakness with choppy movement continued in the market for the fourth consecutive sessions on Monday and Nifty closed the day lower by 69 points. After opening with a negative note, Nifty slipped into further weakness in the early part of the session. A sharp intraday buying has emerged from a day's low of 17070 levels in the mid part, but the market failed to sustain the intraday gains towards the later part and closed the day near the open amidst volatility.

A small body of positive candle was formed on the daily chart with long upper and lower shadow. Technically, this pattern indicate a formation of high wave type candle pattern and this displays high volatility in the market. Normally, such formations after a reasonable declines indicate bottom reversal in the market. But, having formed this pattern at the high, within a narrow range movement, the chances of any important bottom reversal is ruled out.

The mid part of long bull candle of 15th Feb is now acting as a support around 17100 levels. As per this pattern, a decisive move below 17100 levels could drag Nifty down to the lower end of that bull candle around 16840 levels in the near term.

Conclusion: The short term trend of Nifty continues to be choppy with range bound action. Still there is no strong evidence of Nifty forming bottom reversals around the support of 17100 levels. Further weakness from here could open a next downside target of 16800 in the near term. Immediate resistance is placed at 17350 levels.

Source : Equity Bulls

Keywords

TechnicalWrap Nifty Sensex HDFCSecurities