Technical Wrap - Dec 29, 2021 - Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After showing a sustainable upmove in the last couple of sessions, Nifty slipped into minor weakness amidst volatility on Wednesday and closed the day lower by 19 points. After opening on a negative note, the market moved up in the early part of the session. It later shifted into an intraday volatility in the mid part and lost grounds towards the end to close near the lows.

A small negative candle was formed on the daily chart with upper shadow. Technically, this pattern indicate a lackluster type movement at the crucial overhead resistance. This could hint at a possibility of downward correction in the market from the highs.

The market is currently placed at the important trend line resistance around 17300 levels (down sloping trend line connecting lower highs). The market showing weak upside strength to surpass the hurdle on Wednesday could indicate chances of further consolidation or minor weakness in the short term.

The negative chart pattern of lower tops and bottoms is intact on the daily chart and current upside could be in line with lower high formation (lower top needs to be confirmed). Recently, Nifty showed strength during minor dips and bounced back sharply from the lows.

Conclusion: The market seems to have placed at the crucial overhead resistance and lacking its strength to surpass above the hurdle. There is a higher possibility of further consolidation or downward correction in the next 1-2 sessions before showing further upside bounce again from the lows. Immediate support is placed at 17100 levels.

Source : Equity Bulls

Keywords

TechnicalWrap HDFCSecurities Nifty Sensex