Technical View - Dec 17, 2021 - Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After showing consolidation movement with weak bias in the last three sessions, Nifty tumbled down sharply on Friday and closed the day by 263 points. After opening with a slightly negative note, the market continued with decisive intraday weakness in the early-mid part of the session. The attempt of upside recovery of mid part was failed to sustain and the market finally closed near the lows.

A long bear candle was formed on the daily chart, that has broken below the immediate support of ascending trend line, which was connected rising swing lows. This market action indicate sharp downward reversal in the market post upside bounce of early part of the month. Hence, one may expect further weakness in the short term.

Nifty on the weekly chart has formed a long bear candle post upside bounce of previous two weeks. The weekly chart pattern indicate a formation of falling three methods (not a classical one) and this could be considered as a bearish continuation pattern.

Conclusion: An attempt of bulls to make a comeback from the lows went into toss and the market followed the downtrend continuation pattern as per the long term charts. One may expect further weakness down to 16750 and lower by next week. Immediate resistance is placed at 17180 levels.

Source : Equity Bulls

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TechnicalView HDFCSecurities Nifty Sensex