Technical Wrap - April 5, 2023 - HDFC Securities

By Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities on today's market performance.

After showing a consolidation type movement on Monday, Nifty continued its sharp upside momentum on Wednesday and closed the day with handsome gains of around 159 points. After opening with a positive note, the market continued its upmove with range bound action in the early to mid part of the session. The upside momentum continued in the mid to later part without any reasonable intraday dips in between and Nifty closed at the highs.

A long bull candle was formed on the daily chart on Wednesday after a small breather type candle pattern of Monday. Technically, this pattern indicates an uptrend continuation pattern post small pause. After witnessing a decisive upside breakout of the crucial resistance of 17200 recently, the Nifty is now placed at the edge of moving strongly above another important resistance of around 17600 levels (opening significant downside gap of 10th March).

The present sharp upside bounce is likely to negate the bearish chart pattern of lower tops and bottoms on the daily chart (confirmation on the move above 17800). The overall chart pattern is getting stronger as per smaller and longer term charts like daily and weekly.

Conclusion: The short term trend of Nifty continues to be positive and we expect this upside momentum to continue in the coming sessions. The near term upside targets for the Nifty is around 17800 and next 18250 levels for the next one week. Immediate support is placed at 17400 levels.

Source : Equity Bulls

Keywords

TechnicalWrap HDFCSecurities Nifty Sensex