Technical Wrap - Sep 26, 2022 - HDFC Securities

Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

The steep weakness continued in the market for the second consecutive session on Monday and Nifty closed the day lower by 311 points. After opening with a negative note, Nifty showed follow-through weakness in the early-mid part of the session. Intraday upside recovery of the mid part has failed to sustain, and the market slipped again towards the end to close near the lows. The opening downside gap remains unfilled.

A long bear candle was formed on the daily chart with an opening downside gap. Technically, this market action indicates a sharp down-trended movement in the market. Though Nifty declined sharply by around 1000 points from the high of 18K levels, still there is no confirmation of any buying emerging from the lows.

After a decisive downside breakout of the immediate support of minor up trend line at 17500 levels, the Nifty is now sliding down to the crucial lower support around 16800 levels as per the concept of change in polarity. Previously, this value area (16800) area has witnessed many hits and misses in the past and the underlying showed sharp follow-through movements post its upside and downside breakouts in this area. Hence, there is a higher possibility of an upside bounce from the lower support in the short term.

Conclusion: The short-term trend of Nifty is sharply down, and the weakness is expected to continue for the next 1-2 sessions. The lower support area of 16800 is expected to offer a base for the market in the short term.

Source : Equity Bulls

Keywords

TechnicalWrap HDFCSecurities Nifty Sensex