Technical Wrap - Jan 13, 2023 - HDFC Securities

Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After showing weakness with high volatility in the last three sessions, Nifty witnessed an excellent upside recovery from the lows and closed the day with handsome gains of around 98 points. After opening with a flat note, Nifty slipped into weakness in the early-mid part of the session. The buying has emerged from the day's low of 17774 levels and upside continued in the mid to later part and Nifty closed near the highs.

A reasonable positive candle was formed on the daily chart with upper and lower shadow. Technically, this pattern indicates a reversal on the upside. The formation of upper and lower shadow signal high volatility in the market.

The triangle formation on the daily chart is still intact. After the failed attempt of downside breakout of the triangle on Thursday at 17760 levels, the market is expected to move up to the upper end of triangle at 18100 levels in the next week. A doji or a high wave type candle pattern was formed on the weekly chart with swing lows of 17761 levels. This is encouraging signal for bulls for the short term.

Conclusion: The market action of Friday could be a cheering factor for bulls to make a comeback. However, a decisive move above 18100 levels could be considered as an important bottom reversal pattern and that could have more upside in the near term. Immediate support is at 17760 levels.

Source : Equity Bulls

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TechnicalWrap HDFCSecurities Nifty Sensex