Market Commentary

Technical Wrap - Jan 27, 2023 - HDFC Securities

Posted On : 2023-01-27 18:39:43( TIMEZONE : IST )

Technical Wrap - Jan 27, 2023 - HDFC Securities

Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After beginning with steep downtrend from Wednesday, the market continued with sharp downside momentum on Friday and Nifty closed the day lower by 287 points. After opening with negative note, the Nifty continued with weakness in the early to mid part of the session. Intraday pull rally attempt in between have been used as a sell on rise opportunity. Minor upside recovery was seen from the lows towards the end.

A long bear candle was formed on the daily chart, which indicates a decisive downside breakout of the sideways range movement in the market at 17800 levels. The Nifty was in a range of 18250 to 17750 levels over the last one month and the market action of the last two sessions open the potential downside pattern target of around 17200-17300 levels in the near term.

Technically, any pullback rally from here could encounter strong overhead resistance of around 17750 levels, as per the concept of change in polarity and that could be a sell on rise opportunity for the coming sessions. Weakness is likely to continue for the next 1-2 sessions and the important economic event of Union Budget 2023 on 1st Feb is expected to show fresh direction for the Nifty ahead.

Source : Equity Bulls


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