Technical Wrap - Oct 14, 2022 - HDFC Securities

Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After showing weakness with volatility on Thursday, Nifty showed a decent upmove with volatile movement on Friday and closed the day higher by 171 points. After opening with a huge upside gap of 305 points, Nifty made an attempt to move up in the early mid part of the session. It failed to sustain the highs of 17347 levels and slipped into minor downward correction from the highs in the mid to later part of the session. The opening upside gap has been filled partially.

A long negative candle was formed on the daily chart with gap up opening. This pattern indicates an attempt of upside breakout of the initial resistance of 17260 levels. But the market was not able to sustain above the hurdle towards the end.

Nifty as per weekly chart formed a positive candle with upper and lower shadow. Technically, this pattern signal a formation of high wave type candle pattern. This indicates high volatility in the market. Nifty is currently placed near the strong weekly support of around 16800 levels, which is intermediate ascending trend line and also horizontal line support as per change in polarity.

Conclusion: The decisive upmove of Friday could be a cheering factor for bulls to make a come back from the lows. But, a sustainable move above 17260 levels could pull Nifty towards the next important resistance of around 17425 levels. Immediate support is placed around 17100-17050 levels.

Source : Equity Bulls

Keywords

TechnicalWrap HDFCSecurities Nifty Sensex