Technical Wrap - August 24, 2022 - HDFC Securities

Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After showing a sustainable upside bounce on Tuesday, Nifty shifted into a consolidation with positive bias on Wednesday and closed the day higher by 27 points. After opening with a negative note, the market showed intraday volatility throughout the day. Upside momentum got strengthened during later part of and the Nifty closed near the highs.

A small positive candle was formed on the daily chart, that placed beside the long positive candle of previous session. Technically, this pattern indicate a range bound movement in the market after a pullback rally from the lower supports. This also reflects a lack of selling interest in the last couple of sessions after a sharp reversal on the downside on 19 and 22 August.

The Nifty placed at the 23.6% fibonacci support as well as 20day EMA around 17340 levels and the positive chart pattern like higher tops and bottoms is still intact. Hence, we expect further upside in the coming session. However, if the short covering doesn't emerge in the next 1-2 sessions, the market could face another round of selling pressure.

Conclusion:The market is in an attempt to comeback from the lows and further sustainable upmove from here could bring bulls into a driver's seat. Immediate resistance to be watched at 17650 and a sustainable move above this area is expected to pull Nifty towards another hurdle of 17850 levels in the short term.

Source : Equity Bulls

Keywords

TechnicalWrap HDFCSecurities Nifty Sensex