Technical Wrap - March 15, 2023 - HDFC Securities

Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

The weakness continued in the market for the fifth consecutive sessions on Wednesday and Nifty closed the day lower 71 points. After opening with an upside gap of 123 points (body gap, not a western gap), the market failed to sustain the opening gains and started with intraday weakness soon after the opening. The intraday downward correction with range bound action continued for rest of the session and Nifty closed the day near the lows.

A long negative candle was formed on the daily chart, that has completely overlapped the similar negative candle of previous session. Technically, this pattern indicates an inability of the market to sustain the gains. Normally, such overlapping candles after a reasonable downward corrections hints at a possibility of reversal pattern on the upside post confirmation.

Though, Nifty placed at the new swing low of 16938, there is no indication of any lower bottom forming at the lows. The positive divergence pattern has started to form in Nifty/RSI daily and in intraday (60 mins) timeframe charts, but still there is no price confirmation for the same.

Conclusion: The short term trend of Nifty continues to be weak. Having moved into oversold region, there is a possibility of an upside bounce from around 16900-16800 levels in the short term. Immediate resistance is at 17200 levels.

Source : Equity Bulls

Keywords

TechnicalWrap HDFCSecurities Nifty Sensex