Technical Wrap - Nov 7, 2022 - HDFC Securities

Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After showing a sustainable upside bounce from the lows on Friday, Nifty shifted into a decent upmove amidst volatility on Monday and closed the day higher by 85 points. After opening with a positive note, the market slipped into intraday weakness in the early mid part of the session. Sharp intraday buying has emerged from the day's low of 18065 levels in the afternoon and the market closed near the highs.

A small candle was formed on the daily chart with upper and long lower shadow. Technically, this pattern indicates a formation of doji type candle pattern (not a classical one). Normally, a formation of doji at the highs calls for caution for long positions. But a sustainable move above the high of doji at 18255 levels is likely to nullify the negative impact of the pattern.

Nifty is currently in an attempt to witness sharp upside breakout above the hurdle of 18150 levels and has closed above it on Monday. New swing high was formed at 18255 levels on Monday. Hence, a sustainable move above 18250 levels could open further strengthening of upside momentum for the market ahead.

Conclusion:The short term trend of Nifty continues to be positive. The market is now showing signs of sustainable upmove into new swing highs. The next upside levels to be watched around 18350 and next 18600 levels in the next 1-2 weeks. Immediate support is placed at 18100 levels.

Source : Equity Bulls

Keywords

TechnicalWrap Nifty Sensex HDFCSecurities