Technical Wrap - March 14, 2023 - HDFC Securities

Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

The down trend continued in the market for the fourth consecutive sessions on Tuesday and Nifty closed the day lower by 111 points amidst volatility. After opening with a slightly positive note, the market made a failed attempt of upside soon after the opening. The weakness continued for rest of the sessions and the intraday upside recoveries in between have been sold at the highs.

A reasonable negative candle was formed on the daily chart with minor upper and lower shadow. Technically, this pattern indicates weakness with high volatility in the market. Normally, excessive volatility at the lows more often results in important bottom formation at the lows post confirmation.

Positive divergence has started to form in daily Nifty and RSI, but there is no confirmation from the price. The larger degree negative chart pattern like lower tops and bottoms continued on the daily chart and present market action could be in line with the new lower bottom formation. But, there is no confirmation of any bottom reversal yet at the lows.

Conclusion: The short term trend of Nifty continues to be weak. Having moved into oversold region, there is a possibility of upside bounce from near 17000-16800 levels in the short term. Immediate resistance is at 17250 levels.

Source : Equity Bulls

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TechnicalWrap HDFCSecurities Nifty Sensex