Technical Wrap - Dec 30, 2022 - HDFC Securities

Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After showing a sustainable upside bounce from the lows on Thursday, Nifty witnessed weakness from the highs on Friday and closed the day lower by 85 points. After opening with a positive note, the market showed gradual declines from the highs with range bound action after opening. The selling got intensified towards the end and Nifty closed near the lows.

A long negative candle was formed on the daily chart, which indicates a formation of bearish dark cloud cover type candle pattern. Formation of such pattern after a reasonable upside bounce could indicate reversal pattern at the highs. Having moved in a broader range of 18200-17950 levels in the last few sessions the probability of further consolidation is likely.

Nifty is currently facing resistance of 18250 levels. After the upside breakout of said hurdle, the market has failed to sustain the highs and slipped into weakness. A reasonable long bullish candle was formed on the weekly chart, which signal pullback rally in the market post sharp weakness. After the downside breakout of the important trend line support around 18200 levels in the last week, Nifty showing immediate upside bounce could be a positive sign. But, a decisive upside momentum could only occur on a sustainable move above the hurdle of 18250 levels. Immediate support is at 17960 levels.

Source : Equity Bulls

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TechnicalWrap HDFCSecurities Nifty Sensex