Technical Wrap - March 17, 2023 - HDFC Securities

Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After showing high volatility at the swing low of 16850 levels on Thursday, Nifty showed a sustainable upmove with volatility on Friday and closed the day higher by 114 points. After opening with a positive note, the market was not able to sustain the opening gains and slipped into weakness from the highs in the early part of the session. Intraday upside recovery has emerged from the mid part and Nifty closed near the days high.

A small body of negative candle was formed on the daily chart with long lower shadow. Technically, this pattern indicates a formation of long legged doji type candle pattern (not a classical one). Hence, we observe back to back doji pattern in the last two sessions. The current market action suggests that market is in the process of near term bottom formation.

Nifty on the weekly chart has formed a long bear candle with lower shadow. The negative chart pattern like lower tops and bottoms is intact on the daily chart and the swing low of Thursday at 16850 could be considered as a new lower bottom of the sequence. One may expect Nifty to move up from here towards the next overhead resistance of 17300-17350 levels by next week. Immediate support is at 16950 levels.

Source : Equity Bulls

Keywords

TechnicalWrap HDFCSecurities Nifty Sensex