Technical Wrap - April 13, 2022 - HDFC Securities

Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After showing minor intraday upside recovery from the lows on Tuesday, Nifty shifted into weakness amidst a range movement on Wednesday and closed the day lower by 54 points. After opening with an upside gap of 61 points, the market made an attempt to move up in the early part of the session. It failed sustain the highs of 17663 levels and slipped into weakness in the mid to later part of the session.

A long negative candle was formed on the daily chart with minor upper shadow. Technically, this pattern indicate a sell on rise in the market. The Nifty is now placed at the edge of downside breakout of the support at 17450 levels (support as per the concept of change in polarity). Hence, a move below this area could open further weakness in the short term.

Nifty as per weekly chart formed a negative reversal pattern. After the formation of doji type candle pattern at the significant overhead resistance of down sloping trend line at 18150 levels in last week, the market showed follow-through weakness in this week and closed lower. The weekly candle pattern of the last three weeks signal a formation of evening doji star type reversal pattern (not a classical one) at the important resistance. This is not a good sign and one may expect broader weakness in the market in the near term.

Conclusion: The short term trend of Nifty continues to be negative. Placement of Nifty at the edge of immediate support as per smaller timeframe and the formation of evening doji star type candle pattern at the important hurdle could indicate more weakness for the market ahead. Next lower supports to be watched at 17200-17000 levels.

Source : Equity Bulls

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TechnicalWrap HDFCSecurities Sensex Nifty