Technical View - Nov 30, 2021 - Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After a sustainable upside recovery from the lows on Monday, the Nifty has failed to sustain the highs on Tuesday, as it witnessed high volatility and closed the day lower by 70 points. Nifty opened on a positive note, the formation of doji type candle pattern on Monday, the Nifty made an attempt to move up on Tuesday and moved up sharply in the early part of the session. Steep intraday weakness got triggered from the day's high of 17324 and the market continued with weakness for remaining part of the session. The intraday upside recovery of mid part was not successful and the market closed near the lows.

A small negative candle was formed on the daily chart with long upper shadow. Technically this pattern signal sell on rise type action. Nifty showing lack of strength at the highs signal weak upside bounce in the market and one may expect Nifty to reverse down again and reach the lows of 16782 levels in the short term. The negative chart pattern of lower highs and lower lows is intact on the daily chart and Tuesday's high of 17324 could be considered as a new lower high of the sequence.

Conclusion: The near term trend of Nifty continues to be negative. The display of lack of strength during upside bounce could hint at a possibility of further weakness down to 16700 levels in the next few sessions. The immediate downside target could be around 16500-16300 levels and this is likely to be achieved in the next 1-2 weeks. Immediate resistance is placed at 17300 levels.

Source : Equity Bulls

Keywords

TechnicalView Nifty HDFCSecurities