Technical Wrap - Dec 22, 2022 - HDFC Securities

Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After showing weakness from the highs on Wednesday, Nifty failed to sustain the intraday gains on Thursday and closed the day lower by 71 points amidst high volatility. After opening on a positive note, Nifty started to show weakness from the highs soon after the opening. Minor intraday pullback rallies in between have been sold into and the market closed near the lows.

A long negative candle was formed on the daily chart, which indicates downtrend continuation pattern amidst range movement. We observe overlapping candles over the last few sessions which reflects markets inability to sustain the gains.

Nifty is currently placed at the cluster supports of around 18100 levels, which are ascending trend line and the area of previous swing highs as per the concept of change in polarity, according to weekly timeframe chart. Though Nifty placed at the supports, there is no indication of any sustained buying emerging from the support.

Conclusion: The short term trend of Nifty remains weak. Any slow down in the downside momentum around the support of 18100-18000 levels in the next 1-2 sessions could result in a sharp upside bounce from the lows. There is no sign of any bottom reversal forming around the supports so far. Immediate resistance is placed at 18240 levels.

Source : Equity Bulls

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TechnicalWrap HDFCSecurities Nifty Sensex