Technical View - Nov 29, 2021 - Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After showing sharp weakness on Friday, Nifty shifted into a minor pullback rally on Monday and closed the day with minor gains of 27 points. After opening with slightly positive note, the market slipped in to a quick intraday weakness soon after the opening. A sustainable upside recovery has emerged from a day's low of 16782 levels in the early part, but the market failed to sustain the high.

An identical open and close session was formed on Monday (with slight difference) with upper and long lower shadow formation. Technically, this pattern indicate a formation of long legged doji type candle pattern. This market action signal indecision among market participants after the downward correction. Normally, such a formation of long legged doji after a reasonable decline could be considered as a trend reversal for the market, post confirmation. Hence, there is a possibility of minor pullback rally in coming sessions.

The overall negative chart pattern remains intact in Nifty as per smaller and larger timeframe charts. The formation of negative sequence like lower highs and lower lows is also active on the daily timeframe chart. Hence, any upmove from here could be a part of new lower high formation and that could be considered as a sell on rise opportunity for the near term.

Conclusion: The down trend status in Nifty is still alive and the minor pullback rally is expected in the next 1-2 sessions. At the higher levels 17200-17300 is going to be a strong overhead resistance and expected to be a sell on rise opportunity in the market. The next lower supports to be watched at 16780 levels.

Source : Equity Bulls

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TechnicalView HDFCSecurities Nifty