Technical View - Dec 14, 2021 - Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

The market shifted into a consolidation movement on Tuesday post sharp weakness of Monday and closed the day lower by 43 points. After opening with a downside gap of 85 points, the Nifty slipped into further weakness in the early mid part of the session. A sustainable upside recovery has emerged from a day's low of 17225 levels and the Nifty finally closed the day by erasing most of intraday losses towards the end. The opening downside gap has been filled completely.

A small positive candle was formed at the lows with minor upper and lower shadow. Technically, this pattern indicate a formation of high wave type candle pattern. Normally, such pattern after a reasonable weakness alerts for trend reversal. Confirmation is required for the reversal pattern.

After the formation of bearish engulfing type candle pattern on Monday at the crucial resistance of 17600 levels, the market was not able to show any sharp follow-through weakness in the subsequent session. This could be positive signal for the bulls to make a comeback. Any sustainable upside bounce from here has a chances of negation of that bearish pattern.

Conclusion: The market showing consolidation movement on Tuesday, post bearish pattern of Monday could signal chances of sustainable upside bounce back in the coming sessions. The important resistances to be watched around 17500 and next 17650 levels. Immediate support is placed at 17200 levels.

Source : Equity Bulls

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TechnicalView HDFCSecurities Nifty