Technical Wrap - August 26, 2022 - HDFC Securities

Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After showing higher level weakness on the day of F&O expiry of Aug series on Thursday, Nifty shifted into a consolidation on Friday and closed the day higher by 36 points amidst volatility. After opening on a positive note, the market moved into a gradual weakness with range bound action for better part of the session. Intraday volatility has witnessed towards the end and Nifty closed near the lows.

A small negative candle was formed on the daily chart with minor upper and lower shadow. The Friday's candle was placed within a long bear candle of previous session. Technically, this action indicates range movement in the market with high volatility.

Nifty managed to sustain the upper levels in the last four sessions, after a beginning with a steep negative note from the crucial overhead resistance from last week. This pattern hints at a possibility of one more attempt of upmove towards 17700-17800 levels by next week.

Nifty on the weekly chart formed a small negative candle with long lower shadow. After the downward reversal from the highs in the last week, Nifty showing upside recovery in this week signal probability of another round of upside bounce. However, the recent lows of 17350 is going to be crucial.

Conclusion: The short term trend of Nifty is range bound with volatility and the consolidation movement is expected to continue for the next week. We expect Nifty to trade in a range of 17800-17300 levels by next week. Any decisive breakout on either side is likely to accelerate momentum in the market.

Source : Equity Bulls

Keywords

TechnicalWrap HDFCSecurities Nifty Sensex