Technical Wrap - Feb 23, 2023 - HDFC Securities

Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After showing sharp weakness on Wednesday, Nifty shifted into a consolidation with weak bias on Thursday and closed the day lower by 43 points. After opening with a slightly positive note, the market showed high volatility in the early part of Thursday, which is a day of f&o expiry of Feb series. It later shifted into a narrow range movement for better part and finally closed the day off the lows.

A small negative candle was formed on the daily chart which indicates a formation of high wave type candle pattern. Normally, such pattern formation after a reasonable downward correction signal possible upside bounce. Nifty is currently placed near the crucial support of 17400-17300 levels and has recovered decently on the upside in the recent past.

The support of 200 day EMA has been instrumental with regards to important trend reversal in the past. The downside violation of this moving average support at 17590 levels signal higher possibility of sizable upside bounce in the market from the said lower supports for the short term. Immediate resistance is placed at 17650 levels.

Source : Equity Bulls

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TechnicalWrap Nifty Sensex HDFCSecurities