Technical Wrap - March 16, 2022 - HDFC Securities

Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After showing weakness from near the crucial overhead resistance of 17K mark, Nifty witnessed an excellent comeback in the subsequent session of Wednesday and closed the day with handsome gains of 312 points. After opening on an upside gap of 213 points, the market shifted into an intraday narrow range movement for better part of the session. Upside momentum has picked up in the later part of the session and Nifty closed near the highs. The opening upside gap remains unfilled.

A reasonable long bull candle was formed on the daily chart with gap up opening (body gap, not a western gap). Technically, this market action suggest a chances of decisive upside breakout of 17000 levels in coming session. This is positive indication.

The resistance area of 16800-17000 levels (resistance of uptrend line, as per change in polarity, previous multiple swing lows and opening downside gap of 24th Feb) has been a significant value area in the past. We observe few significant upside bounces and a decisive downside breakout from near this area in the recent past. However, if this hurdle gets surpassed on the higher levels, then one may expect sharp through upmoves in the near term. On such circumstances, Nifty could reach up to 17500 levels in a quick period of time.

Conclusion: Having placed at the edge of 17K mark, the stage is set for the Nifty to witness an excellent upside breakout of 17000-17050 levels in the short term. A sustainable move above this area is expected to result in a decisive follow through upmoves in the market. Any failure could result in minor weakness or consolidation at the highs. Immediate support is placed at 16830 levels.

Source : Equity Bulls

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TechnicalWrap HDFCSecurities Nifty Sensex