Technical Wrap - Jan 5, 2023 - HDFC Securities

Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After showing sharp weakness on Wednesday, Nifty continued with follow-through negative action on Thursday and closed the day lower by 50 points. After opening with positive note, the market failed to sustain the opening gains and slipped into weakness for better part of the session. Sustainable upside recovery has emerged from the days low of 17892 in the mid part and Nifty closed the day off the lows.

A reasonable negative candle was formed on the daily chart with long lower shadow. Technically this pattern indicates downside continuation pattern amidst volatility. The upside recovery of Thursday signal that buying is expected to emerge from near the lower support of around 17750-17800 levels.

Negative chart pattern like lower tops and bottoms continued on the daily chart and the Nifty is expected to revisit the recent swing lows of 17775 levels in the short term. Any upside bounce from here could encounter resistance around 18100 levels.

Source : Equity Bulls

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TechnicalWrap HDFCSecurities Nifty Sensex