Technical View - Dec 7, 2021 - Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After showing sharp weakness on Monday, Nifty witnessed a decent comeback on Tuesday and closed the day higher by 264 points. After opening with an upside gap of 116 points, the market continued with upside momentum for the better part of the session. Minor intraday weakness got triggered at the highs of 17251 and the Nifty closed off the day's high.

A reasonable bull candle was formed on the daily chart and that has placed beside the long bear candle of previous session. This candle pattern indicate a formation of inside day type formation and this could have further positive impact for the next session.

Nifty is currently placed within a broader high low range of 17550-16900 levels. Presently, Nifty is placed at the hurdle of 17250 and a sustainable move above this area could pull towards the next hurdle of 17550 levels.

Conclusion: The sharp upside bounce of Tuesday could cheer bulls to make a comeback from the lows. But, the present upside bounce could be short lived and one may expect selling pressure to emerge from the crucial overhead resistance of 17550-17600 levels in the near term.

Source : Equity Bulls

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TechnicalView HDFCSecurities Nifty