Technical View - Dec 16, 2021 - Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After showing weakness on Wednesday, the market has shifted into a consolidation on Thursday and closed the day with minor gains of 27 points. After opening on an upside gap of 152 points, the market failed to sustain the highs and started to show weakness soon after the opening. It later displayed high volatility in the mid part and managed to move up towards the later part of the session.

A small negative candle was formed on the daily chart with minor lower shadow, Technically this pattern signal a continuation of range bound action in the market. The Nifty has been moving within a high low range of around 17375-17190 levels in the last three sessions.

After the formation of bearish engulfing pattern at the hurdle on 13th Dec, the market has shifted into a narrow range movement so far with minor weakness. The smaller degree of higher highs and higher lows is intact as per daily time frame chart. Hence, this consolidation movement without any sharp follow-through declines could be positive indication for the bulls to make a comeback from the lows.

Conclusion: The short term trend of Nifty continues to be range bound with negative bias. The market sustaining above the support of 17180-17200 levels, post bearish pattern hints at a possibility of an upside bounce from the lows in the coming sessions. Any sustainable upmove from here could encounter resistance around 17550-17600 levels again in the near term.

Source : Equity Bulls

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TechnicalView Nifty Sensex HDFCSecurities