Technical Wrap - Oct 10, 2022 - HDFC Securities

Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After showing consolidation movement with weak bias on Friday, Nifty slipped into weakness with high volatility on Monday and closed the day lower by 73 points. After opening with a huge downside gap of 219 points, Nifty slipped into weakness in the early part of the session. It later showed a sharp intraday upside recovery from the lows of 17065 levels in the early part and witnessed high volatility in the mid to later part of the session. The opening downside gap has been filled partially.

A long bull candle was formed on the daily chart, after opening lower. Technically, this pattern indicates a high volatility and emergence of buying interest from the lows. This is positive indication and one may expect upside bounce in the market in short term.

The present swing low of 17064 could be considered as a new higher bottom of smaller positive sequence. This could result in Nifty revisiting the crucial overhead resistance of around 17450 levels, as per the concept of change in polarity. This pattern could eventually result in Nifty witnessing a decisive upside breakout of the hurdle in the near term.

Conclusion: The short term trend of Nifty is weak with high volatility. The emergence of sharp buying interest from near the lows could be a cheering factor for the bulls to make a come back. Hence. one may expect Nifty to retest the hurdle of 17400 levels in the near term. Immediate support is placed at 17050-17100 levels.

Source : Equity Bulls

Keywords

TechnicalWrap HDFCSecurities Nifty Sensex