Technical Wrap - Feb 27, 2023 - HDFC Securities

Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

The weakness continued in the market for the seventh consecutive sessions on Monday and Nifty closed the day lower by 73 points with upside recovery note. After opening with a negative note, Nifty showed follow-through weakness in the early to mid part of the session. Volatility was observed in the mid part and the upside recovery was seen in the later part of the session.

A small negative candle was formed on the daily chart with long lower shadow. Technically, this pattern indicates a formation of bullish hammer type candle pattern (not a classical one) at the lows of 17300 levels. Normally, such hammer pattern formation post reasonable decline in the underlying signal caution for reversal on the upside post confirmation. Hence a sustainable upside bounce on Tuesday is likely to confirm a short term bottom reversal pattern.

Conclusion: The short term trend of Nifty continues to be negative. Having declined in the last seven sessions, the chances of pullback rally is emerging from the lows of 17300 levels. Any attempt of upside bounce from here could find strong resistance around 17600 levels. The immediate support is placed at 17300-17250 levels.

Source : Equity Bulls

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TechnicalWrap Nifty Sensex HDFCSecurities