Technical Wrap - Nov 21, 2022 - HDFC Securities

Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After showing a decent upside recovery from the lows on Friday, the Nifty continued with weakness on Monday and closed the day lower by 147 points. After opening with a negative note, the market slipped into weakness in the early part of the session. It later shifted into a narrow intraday range movement for the rest of the session.

A long negative candle was formed on the daily chart, which indicates ongoing downward correction in the market. The immediate support of the last month (10 day EMA) has been broken on the downside at 18250 levels and Nifty closed lower.

The market is now sliding down to the next important cluster support of around 18100-18000 levels (previous opening upside gap of 11th Nov, 20day EMA and previous tops as per change in polarity). This is going to be crucial support for the market, and one may expect an upside bounce from the lower levels.

Conclusion: The short-term trend of Nifty seems to have turned down and the market is now approaching a crucial support zone of around 18100-18000 levels, which is expected to be a make or break for the market ahead. Failure to show any sustainable upside bounce from near the said support is likely to open sharp weakness for the market ahead.

Source : Equity Bulls

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TechnicalWrap HDFCSecurities Nifty Sensex