Share Market Weekly Technical Report – April 21, 2023

The Indian equity markets took a breather post three weeks of consecutive rally, wherein the benchmark index witnessed a cool-off from the higher grounds. Overall, it has been a decent week where the Bulls opted to take some money off the table. However, the broader market had a splendid move that kept the momentum for the market participants. Amidst profit booking, the Nifty50 index corrected just over a percent and settled the week a tad above the 17600 level.

The market movement was very much in line with the in-house expectation post the strong rally and to be considered healthy from a technical point of view. Technically speaking, amidst the price-wise correction in the market, the chart structure construes optimism, and it is highly anticipated to continue the cheerful run inthe upcoming week. As far as levels are concerned, till the index firmly withholds the pivotal support of 17500, there is no sign of caution in the market. While on the higher end, 17700-17800 holds stiff resistance and a decisive move beyond which could trigger the next leg of rally in the comparable period.

Going forward, we remain sanguine with the current momentum and would advocate the traders to utilize the dips to add long positions in the index. Simultaneously, one should stay abreast with global and domestic developments regularly and continue with a buy on decline strategy for the time being. Also, we expect strong moves in the broader market with the ongoing earning season; hence, one needs to have a stock-centric approach for better trading opportunities.