Technical View - Dec 10, 2021 - Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

The consolidation type movement continued in the market for the last two session and the Nifty closed the day lower by 05 sessions amidst a range movement. Nifty opened on a weak note and made failed attempt to move up soon after the opening. The weakness with range movement continued for the early to mid part of the session and the market has witnessed smart upside recovery in the later part of the session and erased most of intraday loss towards the end.

A small positive candle was formed with upper and lower shadow. Technically, this pattern indicates a formation of high wave type candle pattern. Normally, such high wave formation after a reasonable upmove or down move could be considered as a reversal pattern on either side. Having formed this pattern amidst a range movement, the predictive value could be less. This could be considered as a range bound action.

Nifty showing range movement at the important hurdle of 17550-17600 levels could be a positive indication for the bulls to make comeback. Hence, this consolidation movement at the important resistance could eventually result in an upside breakout of the resistance in the near term.

Conclusion: The short term trend of Nifty continues to be range bound. The lack of selling pressure at the important resistance could indicate higher chances of sharp upside breakout of the hurdle in the near term. Immediate support is placed at 17400-17380 levels.

Source : Equity Bulls

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TechnicalView HDFCSecurities Nifty