Technical Wrap - Oct 27, 2022 - HDFC Securities

Mr. Subash Gangadharan, Senior Technical and Derivative Analyst, HDFC Securities

Markets ended with healthy gains on Thursday after a gap up opening. The Nifty finally gained 80.6 points or 0.46% to close at 17,736.95. Broad market indices like the BSE Mid Cap and Small Cap indices gained less, thereby underperforming the Nifty. Market breadth was positive on the BSE/NSE.

Zooming into 15 minute chart, we see that though Nifty witnessed selling pressure from the highs, the index recovered from the lows and managed to close with healthy gains. The short term trend therefore remains up as the Nifty has moved above the previous swing high of 17429 and made higher bottoms over the last few weeks. The Nifty has also closed above a downward sloping trend line that has held down the highs of 2021 and 2022.

The Nifty could now attempt to test the recent highs of 17812-17919. Once these levels are crossed, the Nifty looks set to move higher towards the previous intermediate highs of 18096. The index could witness a mild correction in the very near term. It is important that the Nifty holds above the immediate supports of 17607-17505 for the uptrend to continue.

Conclusion: While the Nifty remains in a short term uptrend and looks set to move higher towards the previous intermediate highs of 18096, it is important that on any mild corrections the index holds above the immediate supports of 17607-17505 for the uptrend to continue.

Source : Equity Bulls

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TechnicalWrap HDFCSecurities Nifty Sensex