Technical Wrap - Jan 17, 2023 - HDFC Securities

Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After showing weakness from the highs on Monday, Nifty shifted into a sustainable upmove amidst range movement on Wednesday and closed the day with decent gains of 158 points. After opening with a positive note, Nifty continued its upside momentum in the early to mid part of the session. The upside momentum has strengthened towards the end and Nifty closed near the highs.

A long bull candle was formed on the daily chart, that has engulfed the negative candle of previous session. Technically, this pattern indicates chances of upside breakout of the sideways range movement of 18100-17800 levels in the short term.

The triangle pattern on the daily chart is still intact. After reacting down from near the upper end of a triangle at 18050 levels on Monday, Nifty bounced back smartly on Tuesday and closed at the edge of upper end again. This signal a possibility of upside breakout of triangle pattern as per daily timeframe chart.

Conclusion: The underlying short-term trend of Nifty is positive. The market is currently placed at the edge of upside breakout of the consolidation or triangle pattern around 18100 levels. A decisive upside breakout with confirmation could open a large upside for the market ahead. Any lack of strength during upside breakout is likely to result in reversal of uptrend.

Source : Equity Bulls

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TechnicalWrap HDFCSecurities Nifty Sensex