Technical Wrap - Jan 12, 2023 - HDFC Securities

Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After showing narrow range movement with weak bias on Wednesday, Nifty slipped into weakness with volatility on Thursday, but was able to show smart upside recovery from the lows and closed the day lower by 37 points. After opening with a positive note, the market was not able to sustain the highs and slipped into weakness in the early to mid part of the session. A sustainable intraday upside recovery has emerged from the day's low of 17761 levels and the market closed the day off the lows.

A small negative candle was formed on the daily chart with lower shadow. We observe two consecutive candles with lower shadows in the last couple of sessions. On Thursday, the market has moved below the crucial lower support of 17800 levels but, was managed to pull back from the lows.

The formation of triangle type pattern on the daily chart is intact and Nifty was seen holding on the lower end of triangle at 17800 levels, with false downside breakout on Thursday. The market is still struggling to sustain the highs and we observe consistent formation of lower swing highs on the daily chart.

Conclusion: The upside recovery in the market from the lows could be a cheering factor for bulls to make a comeback. But, Nifty needs to sustain the pull back rally to call this action as a bullish reversal pattern. A sustainable move above 17950-18000 levels could be a crucial to watch on the higher side. Further weakness below 17800-17750 is likely to open a possibility of sharp downside breakout in the market.

Source : Equity Bulls

Keywords

TechnicalWrap HDFCSecurities Nifty Sensex