Technical Wrap - August 30, 2022 - HDFC Securities

Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After showing sharp weakness on the backdrop of weak global cues on Monday, Nifty witnessed an excellent comeback on Tuesday and closed the day with hefty gains of around 446 points. After opening with a positive note, the market continued its upward journey for the whole session. Minor intraday dips in between have been bought into and Nifty closed near the highs.

A long bull candle was formed on the daily chart that has engulfed previous few sessions range movement in one session. Such a long bull candle formation after a down trend of few weeks signal a possible completion of recent down leg and that could resume another round of uptrend in the near term.

Nifty has regained most of its lost ground and is now placed near the important resistance of down trend line around 17850-17900 levels. After a failed upside breakout of this hurdle during mid part of Aug, the market is now preparing for a decisive upside breakout of that trend line hurdle. The formation of long bull candle of Tuesday could be an early signal of possible sharp upside breakout.

Conclusion: Nifty seems to have reversed the recent down trend sharply on the upside. Now, the bulls are ready to show big bang upside breakout of the resistance of around 16900 levels by this week end or by next week. A decisive move above 17900 levels could pull Nifty towards the next upside target of 18300-18400 in the next few weeks. Immediate support is placed at 17600 levels.

Source : Equity Bulls

Keywords

TechnicalWrap Nifty Sensex HDFCSecurities