Technical Wrap - Feb 24, 2023 - HDFC Securities

Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After showing narrow range movement on Thursday, Nifty continued with weakness amidst a range bound action on Friday and closed the day lower by 45 points. After opening with a positive note, the market was not able to sustain the morning gains and slipped into decline in the early part of the session. The weakness with range movement continued for rest of the session.

A long bear candle was formed on the daily chart, which indicates down trend continuation pattern. Though, Nifty placed near the crucial support of 17450-17500 levels, there is no sign of any reversal pattern unfolding at the lows. New swing low has been formed at 17421 levels.

Nifty on the weekly chart formed a long bear candle, which indicates a sharp reversal in the market this week after the recent upside bounce. The negative chart pattern like lower tops and bottoms was formed on the weekly chart and Nifty is currently on the way down to form a new lower bottom of the sequence (below 17353).

Conclusion: The short term trend of Nifty continues to be negative. Having failed to show any crucial bottom reversal pattern near the important support of 17500 levels so far, there is a possibility of further weakness in the coming sessions. The next lower support is at 17300 and any upside bounce from here could find resistance at 17600 levels.

Source : Equity Bulls

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TechnicalWrap HDFCSecurities Nifty Sensex