Technical Wrap - Sep 20, 2022 - HDFC Securities

Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After showing a sustainable upside bounce from the lower support of 17450 levels on Monday, Nifty witnessed upmove with high volatility on Tuesday and closed the day higher by 194 points. After opening with an upside gap of 148 points, the market continued its upside momentum for the better part of the session. The intraday weakness got triggered from the day's high of 17919 levels and the market turned down from the highs towards the end. The opening upside gap remains unfilled.

A small positive candle was formed on the daily chart with gap up opening and with long upper shadow. Technically this signal presence of strong overhead resistance around 17900-18000 levels. The chart pattern could also indicate weak upside bounce in the last two sessions compared to recent weakness from the highs.

After the formation of higher bottom on Monday at 17429 levels on Monday, the current swing high of 17919 signaling a possible lower top formation, which needs to be confirmed with weakness in the subsequent session.

Conclusion: The upside bounce of the last two sessions could be a relief rally after a sharp weakness from the highs. If Nifty fails to move above 17920 levels in the short term, then one may expect beginning another round of weakness from the highs towards 17450 levels. On the move above the said hurdle, the market could encounter the next resistance of around 18100 levels.

Source : Equity Bulls

Keywords

TechnicalWrap HDFCSecurities Nifty Sensex