Technical Wrap - Jan 4, 2022 - Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

The sharp upside momentum continued in the market for the second consecutive sessions on Tuesday and Nifty closed the day with another promising gains of 179 points. After opening with positive note, the market showed quick intraday profit booking from the highs in the early part of the session. It later shifted into an excellent upside recovery from the lows and the upside momentum continued for the remaining part of the session. Intraday dips in between have been bought into.

Another long bull candle was formed on the daily chart, which is back to back for the two sessions. This is a display of an emergence of strong upside momentum in the Nifty post upside breakout of the hurdle of down sloping trend line recently at 17250 levels. This is positive indication and signal more upside for the short term.

The market has witnessed strength in the upside momentum recently, which was absent in the last couple of months. The crucial resistances have started to break on the upside one after another which signal an excellent shift in the momentum towards upside.

The negative chart pattern of lower tops and bottoms of daily chart has been negated on Tuesday and this action signal that the upside bounce from the lows of 16410 levels is likely to be a new trended upmove rather than pull back rally of a down trend. Hence, any dips from here could open bullish sequence of higher tops and bottoms on the daily chart.

Conclusion: The short term trend of Nifty is sharply up and this upside momentum is likely to continue for the short term. The next upside target to be watched at 18200 levels and this could be achieved in the next one week. Immediate support is placed at 17650 levels.

Source : Equity Bulls

Keywords

TechnicalWrap HDFCSecurities Nifty