Technical Wrap - April 22, 2022 - HDFC Securities

Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After showing sharp upmove in the last couple of sessions, Nifty slipped into weakness on Friday and closed the day lower by 220 points. After opening with a downside gap of 150 points, Nifty made an attempt of upside recovery in the early-mid part of the session, The upside recovery attempt failed in the mid to later part and the market reversed down and closed near the lows. The opening downside gap has been filled partially.

A long negative candle was formed on the daily chart, which indicate a lower top formation. Nifty has been declining over the last 12 sessions and minor negative sequence of lower tops and bottoms have been observed.

Nifty on the weekly chart formed a doji type candle pattern (not a classical one, as the open and close of the week are not identical) at the valuation support of 17150 levels. Normally, a formation of doji after a reasonable decline or upmove signal impending reversal after the confirmation. This could bring some hopes for bulls to make a comeback from the lows in coming week.

Conclusion: The short term trend of Nifty seems to have reversed down on Friday after a reasonable upside of two days. The overall chart pattern indicate that lows of 17000-16800 levels could offer support for the market in next week to show a decisive upside bounce from the lows.

Source : Equity Bulls

Keywords

TechnicalWrap HDFCSecurities Nifty Sensex