Technical View - Dec 9, 2021 - Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After showing sharp upmove in the last couple of sessions, Nifty shifted into a consolidation on Thursday and closed the day higher by 47 points. Nifty opened today with an upside gap of 55 points and failed to sustain the opening gains in the early part of the session and declined from the highs. A smart upside recovery has emerged from the day's low of 17379 levels and the market moved up in the mid to later part amidst a range movement. The opening upside gap has been filled completely.

A small negative candle was formed on the daily chart with long lower shadow. Technically, this indicates a formation of long legged doji type candle pattern. Normally, a formation of doji after a reasonable upmove and at the crucial resistances calls for downward correction from the highs. Having displayed a strength in the current upside bounce, the chances of minor downward correction or consolidation is likely in the coming session.

The area of 17550-17600 level has been a significant value area in the recent past and steep decline has occurred below this area in the last two weeks. Hence, any minor weakness/consolidation from this hurdle in the next 1-2 sessions could mean a higher possibility of sharp upside breakout of the hurdle in the near term.

Conclusion: The short term uptrend of Nifty remains intact. There is a chances of some more consolidation or minor weakness in the next 1-2 sessions before showing any decisive upside breakout of the hurdle of 17550-17600 levels soon. Immediate support is placed at 17380.

Source : Equity Bulls

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