Technical Wrap - Sep 12, 2022 - HDFC Securities

Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

The range bound movement with positive bias continued in Nifty on Monday and the market closed the day higher by 101 points amidst a choppy movement. After opening with a positive note, the Nifty made an attempt to move up in the early part of the session. It later shifted into a narrow range movement for rest of the session.

A small positive candle was formed on the daily chart with minor upper shadow. This market action signal follow through upmove in the market with range movement. Though, Nifty made an attempt to move into new swing highs, but was not able to closed at the highs.

The crucial overhead resistance of 17800 levels (significant down sloping trend line, connected from the top of Oct-21) has been surpassed amidst a range movement, but the strength which is required for a decisive upside breakout of the key overhead resistance is absent so far.

Similar market action was noticed in the past during 17th to 19th Aug above the trend line hurdle and eventually, the market had shifted into a short term downward correction from the highs during mid to later part of Aug. Hence, similar pattern seems to be unfolding at the highs.

Conclusion:The short term trend of Nifty continues to be positive, but the lack of strength is visible above the trend line resistance. There is a possibility of Nifty slipping into a downward correction from near 18K mark. Immediate support is placed at 17800.

Source : Equity Bulls

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TechnicalWrap Nifty Sensex HDFCSecurities