Technical Wrap - Sep 9, 2022 - HDFC Securities

Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After placing at the crucial overhead resistance of 17800 levels on Thursday, Nifty showed a lack of strength to sustain the highs on Friday and closed the day with minor gains of 34 points. After opening with an upside gap, the market made an attempt to move up in the early part of the session. It made a swing high of 17925 levels and witnessed gradual weakness amidst weak market breadth for rest of the session. It closed near the lows and opening upside gap has been filled.

A long negative candle was formed on the daily chart with minor lower shadow. This market action signal a lack of strength at the hurdle and this could open further consolidation or minor downward correction ahead. After such a display of lack of strength during mid of Aug, the Nifty presently showing similar pattern around the hurdle, which calls for caution for the longs at highs.

Nifty on the weekly chart formed a long bull candle, which shows an attempt of upside breakout of the significant overhead resistance- down sloping trend line around 17800 levels. An inability to show follow-through buying from here could mean possibility of minor downward correction for the market ahead.

Conclusion:The short term trend of Nifty remains choppy. Having failed to surpass the important resistance on Friday could signal chances of minor weakness for the market ahead. Immediate support is placed at 17770 levels and a move below this area could trigger short term downward correction for the Nifty. At the highs,17925 is likely to be a strong hurdle for the short term.

Source : Equity Bulls

Keywords

TechnicalWrap HDFCSecurities Nifty Sensex