Technical Wrap - Nov 18, 2022 - HDFC Securities

Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After showing a narrow range movement in the last few sessions, Nifty slipped into downside breakout on Friday, but was able to show a decent upside recovery from the lows in the mid to later part of the session and closed the day lower by 36 points.

A reasonable negative candle was formed on the daily chart with long lower shadow. Technically, this pattern indicates an emergence of buying interest from the lows. Nifty took a support of 10day EMA and also previous opening upside gap of 11th Nov to show upside bounce on Friday.

The positive chart pattern like higher tops and bottoms continued on the daily chart and Nifty is currently in line with the formation of new higher bottom formation. Nifty on the weekly chart formed a small negative candle with minor upper and lower shadow. This signal a formation of high wave type candle formation and this reflects high volatility at the highs.

Conclusion: The Nifty continues to show consolidation movement with weak bias at the highs and still there is no formation of any significant top reversal pattern. Further consolidation or minor weakness from here could find support around 18100 levels and we expect upside bounce from the lows.

Source : Equity Bulls

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TechnicalWrap HDFCSecurities Nifty Sensex