Technical Wrap - Sep 2, 2022 - HDFC Securities

Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

The choppy movement with weak bias continued in the market for the second consecutive sessions on Friday and Nifty closed the day slightly lower amidst volatility. After opening on a positive note, the market showed high intraday volatility of up and down swings for the day. It failed to sustain the highs and finally closed near the lows.

A small negative candle was formed on the daily chart with minor upper and lower shadows. Technically, this pattern indicates choppy movement in the market with negative bias. Presently, Nifty is placed with in a broader high low range of 17800-17300 levels and is currently in the middle of the range.

Nifty on the weekly chart formed a long bull candle with an upper shadow. This pattern signal an emergence of sustainable upside from the lows of 17170 levels. After reacting down from the important resistance of down trend line (connected from lower tops) at 17900 levels in mid of Aug, the market has not showed any sharp down trended movement so far. The buying has emerged from the immediate supports.

Conclusion: The short term trend of Nifty remains choppy. The market is now placed with in a broader high low range of 17800-17300 levels and the movement within this range is likely to continue for next week. One may expect selling pressure building from the highs around 17800 levels and the buying is likely to emerge from the lows of 17300 levels. Hence, the market action could be a buy on dips and sell on rise opportunity for near term.

Source : Equity Bulls

Keywords

TechnicalWrap HDFCSecurities Nifty Sensex