Technical Wrap - March 10, 2022 - HDFC Securities

Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After witnessing a sharp upmove in the last couple of sessions, the upside momentum continued in Nifty on Thursday and the market closed the day higher by 250 points amidst high volatility. Nifty opened on a huge upside gap of 412 points and not able to sustain the highs after opening. Gradual intraday weakness occurred from the highs in the early mid part and finally, Nifty closed the day by erasing most of intraday gains towards the end. The opening upside gap has been filled partially.

A long negative candle was formed with lower shadow on the daily chart, which indicate an emergence of profit booking at the highs. Currently, Nifty is placed at the crucial overhead resistance of 16750-16800 levels and failed to sustain above it.

We observe a sharp pull back rally in the last three sessions of around 1000 points in Nifty. Initial resistances of 16200 and 16500 have been broken on the upside recently, but the market has failed to sustain the highs. Hence, any dips from here could find support around 16500 and 16200 levels, but sharp upmove above the crucial overhead resistance of 16800-17000 levels could be a tough task for the market ahead.

Conclusion: The short term trend of Nifty continues to be positive. Though, Nifty reacted down from near the hurdle of 16750 levels on Thursday, there is a possibility of market attempting towards 16800-17000 levels in the short term. There is a higher possibility of weakness emerging from the upper resistance in coming sessions.

Source : Equity Bulls

Keywords

TechnicalWrap HDFCSecurities Nifty Sensex