Technical View - Dec 15, 2021 - Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After showing consolidation type movement on Tuesday, Nifty slipped into weakness amidst high volatility on Wednesday and closed the day lower by 103 points. After opening with a flat note, the market slipped into weakness in the earl-mid part of the session. A fine intraday upside recovery has emerged from the day's low of 17192 levels, but the market was not able to sustain the upside recovery attempt and showed weakness again towards the end to close near the lows.

A reasonable negative candle was formed on the daily chart, which signal a possibility of some more weakness or consolidation movement in the next session. Nifty on the daily chart is moving as per the small positive sequence of higher highs and higher lows so far. Currently, placed at the formation of higher bottom, but we need a confirmation of higher bottom formation to call for any upside reversal from here. Nifty as per long term charts like weekly is in a down trend and larger degree of lower tops and bottoms can be observed.

Conclusion: The short term trend of Nifty remains negative with volatility. Further decisive weakness from here could open lower levels of 17000-16900 in the short term. Any upside bounce from here could find strong resistance around 17350-17400 levels.

Source : Equity Bulls

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TechnicalView HDFCSecurities Nifty