Share Market Weekly Technical Report – February 17, 2023

Future outlook In continuation of the lacklusterness from the past couple of trading weeks, our market started the new week on a mild note within the same slender range. However, by mid-week, the buying emergence in the broader market led Nifty to break the shackles and come out from the slumber phase. But eventually, the bulls failed to capitalize on the gains and by the weekend, Nifty re-entered its congestion zone. Post the intense tug of war throughout the week, Nifty settled around 17950 levels, procuring nearly half a percent from the previous week’s closure.

The lack of follow-up buying nullified the breakout attempt, and we fell back into the same zone from where we had started. However, the recent price action could be seen as constructive development for our markets as the index is hovering above the sloping trend line and has also attempted to transcend the sturdy hurdle of the 18000 mark after two weeks of consolidation. As far as levels are concerned, we remain hopeful till the sacrosanct support of 17800-17700 is firmly withheld. On the flip side, sustenance above 18000 could only bring the cheer back in the market, while on the higher end 18200 is likely to be the sturdy wall in a comparable period.

We remain sanguine with the up trend and would advise the traders to utilize the dips to add long position in the index. Meanwhile, a positive contribution from the high beta Banking space could provide the much-needed thrust in the up move. However, despite the lackluster moves in the indices, individual pockets kept buzzing and we expect this to continue. Hence, we advocate traders to focus on a stock-specific approach for better trading opportunities and stay with a similar buy on decline strategy till the time important supports are held comfortably.