Technical Wrap - Sep 13, 2022 - HDFC Securities

Mr. Nagaraj Shetti, Technical Research Analyst, HDFC SecuritiesThe upmove with range bound action continued in the market on Tuesday and Nifty closed the day higher by 133 points amidst lackluster type movement. After opening with an upside gap, the market moved up further in the early part of the session. It later shifted into a narrow range movement at the highs which continued till the end.

A small positive candle was formed on the daily chart with minor upper and lower shadow and with opening upside gap. Technically, this market action signal a formation of spinning top type of candle pattern at the highs. Normally, a spinning top formation after a reasonable upmove or at the hurdle could be considered as a reversal pattern post confirmation. Hence, any weakness from here or from highs could confirm top reversal pattern. However, a sustainable move above this patterns high at 18088 levels is likely to negate the bearish implication.

The market is gradually advancing after surpassing the resistance of significant down trend line (down sloping trend line connected from the top of Oct 21) at 17900 levels. But, the strength of upside momentum which is required for a decisive upside breakout is missing.

Conclusion:The short term trend of Nifty continues to be positive amidst a range movement. The display of lack of strength post upmove of crucial resistance of down trend line at 17900 levels could be a cause of concern. The next two overhead resistances are to be watched at 18115 and 18350 levels. Immediate support is placed at 17950 levels.

Source : Equity Bulls

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TechnicalWrap HDFCSecurities Nifty Sensex