Technical View - Dec 13, 2021 - Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After showing range bound movement in the last couple of session, Nifty witnessed failed upside breakout on Monday, as it slipped into weakness from the highs and closed the day lower by 143 points. Nifty opened on an upside gap of 108 points, moved up further in the early part of the trade. Intraday weakness got triggered from the day's high of 17639 and the weakness intensified in the mid part of the session. The opening upside gap has been filled completely.

A long bear candle was formed on the daily chart after a gap up opening and this candle has engulfed down the last two sessions range movement completely. Technically, this pattern signal a formation of bearish engulfing pattern in a range movement.

The market has tumbled down on Monday from near the crucial upper resistance of 17550-17600 levels and Monday's negative candle pattern is also signaling a failed upside breakout of the key resistance. Hence, there is a possibility of some more dip before the upside bounce from the lows again.

Conclusion: The positive chart pattern like higher tops and bottoms is intact on the daily chart and any weakness from here could be a buy on dips opportunity. The long term trend as per weekly chart remains negative. Immediate support is placed at 17200 levels and any upside bounce from here could find resistance at 17600 levels.

Source : Equity Bulls

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TechnicalView HDFCSecurities Nifty