Technical Wrap - Feb 23, 2022 - HDFC Securities

Mr. Nagaraj Shetti, Technical Research Analyst, HDFC SecuritiesAfter showing a sustainable upside bounce from the lower support of around 16800 levels on Tuesday, Nifty failed to show follow-through upmove on Wednesday and closed the day lower by 28 points, amidst high volatility. After opening on a positive note, the market made an attempt to move up soon after the opening. The upper area of 17200 has acted as a stiff resistance for the market and that resulted in a sharp intraday weakness from the highs towards the end.

A reasonable negative candle was formed on the daily chart at the highs, which indicate counter attack of bears type pattern. Formation of such weak pattern immediately after the sustainable upside from the lower support may not be a good sign for the market and this indicate that the lower important support of 16800 could be retested.

The consistent lower top formation is intact as per daily chart and Wednesday's swing high of 17220 could be signaling a formation of another lower top of the sequence, which needs to be confirmed. Such lower top formations and repeated testing of important supports could eventually results in a decisive downside breakout of the said supports.

Conclusion:The underlying short term trend of Nifty remains choppy and the market is struggling to sustain the higher levels. There is a possibility of sideways range movement with weak bias for the next 1-2 sessions and eventually the Nifty could retest crucial lower support of 16800 levels in the near term. Immediate resistance is placed at 17220 levels.

Source : Equity Bulls

Keywords

TechnicalWrap Nifty Sensex HDFCSecurities