Technical Wrap - Feb 21, 2023 - HDFC Securities

Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

The downside momentum with range movement continued in the Nifty for the fourth consecutive sessions on Tuesday and Nifty closed the day lower by 17 points. After opening with a positive note, the market has witnessed high volatility for the day. It failed to sustain the intraday highs and minor upside recovery was seen from the lows towards the end.

A reasonable negative candle was formed on the daily chart with minor lower shadow. We observe formation of overlapping candles during present weakness and the sharp decline from the swing highs (16th Feb) is missing. This pattern indicates a possibility of an upside bounce which is expected to emerge from the lows.

The positive chart pattern like higher tops and bottoms is intact and present weakness could be in line with the formation of new higher bottom of the sequence. But, still there is no confirmation of any higher bottom reversal at the lows. There is a possibility of an upside bounce in the market from near the support of 17700-17750 levels. Immediate resistance is placed at 17950-18000 levels.

Source : Equity Bulls

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TechnicalWrap Nifty Sensex HDFCSecurities