Technical Wrap - Dec 28, 2021 - Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After witnessing a smart upside bounce from the lows on Monday the upside momentum with range bound action continued in Nifty on Tuesday and the market closed the day higher by 147 points. After opening with an upside gap of 91 points the market continued with upside momentum with range bound movement for the whole session. Intraday dips in between was bought into and the Nifty closed at the highs. The opening upside gap remains unfilled.

A long bull candle was formed on the daily chart with gap up opening. Technically, this pattern indicate an uptrend continuation pattern. The initial resistance of up sloping trend line as per the concept change in polarity has been broken marginally on the higher side. Another hurdle of down sloping trend line is placed around 17350. Hence, the market needs to sustain above these two hurdle to show sharp upside movement.

Tuesday's upmove has negated the bearish engulfing pattern of Friday, which is positive indication. The negative sequence of lower tops and bottoms is still intact as per daily chart and a decisive move above 17400 is likely to negate this bearish pattern.

Conclusion: The market continued with strength on the upside and the overall chart pattern signal that the Nifty could breach the next important resistance of 17350 in the short term. Hence, any decline from the highs could be a buying opportunity. Immediate support is placed at 17120 levels.

Source : Equity Bulls

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TechnicalWrap Nifty Sensex HDFCSecurities