Technical Wrap - Sep 16, 2022 - HDFC Securities

Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After showing weakness from the swing high of 18096 levels on Thursday, Nifty witnessed sharp weakness on Friday and closed the day lower by 346 points. After opening with a negative note, the market continued with down trend for the whole session. Intraday upside bounces in between have been sold into.

A long bear candle was formed on the daily chart, that has engulfed the last 9-10 sessions range movement with positive bias in the last two sessions. Technically, this faster retracement on the downside could mean more weakness for the market ahead. Nifty is currently placed at the support of 17450-17500 levels, which is previous swing lows and also a trend line support (connected from previous higher bottoms). This support is expected to be broken on the downside soon.

Nifty on the weekly chart formed a long range bear candle with the bearish candle formation like dark cloud cover. This weeks chart pattern confirms a false upside breakout of the significant resistance of down trend line at 17900 levels.

Conclusion:The short term trend of Nifty seems to have reversed down. The formation of bearish candlestick pattern on the daily and weekly chart indicates more weakness ahead for the market. The next lower levels to be watched around 17200-17150 in the next couple of weeks. Any upside from here could find resistance around 17700 levels.

Source : Equity Bulls

Keywords

TechnicalWrap HDFCSecurities Nifty Sensex