Technical Wrap - Oct 11, 2022 - HDFC Securities

Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After showing a sustainable upside recovery from the lows on Monday, Nifty witnessed sharp weakness on Tuesday and closed the day lower by 257 points. After opening with negative note, the market has shifted into a range bound action with weak bias for better part of the session. The weakness got intensified in the later part of the session and the market closed near the lows.

A long negative candle was formed on the daily chart, that has engulfed the long bull candle of previous session on the downside. This chart pattern signal a sharp rebound of the recent upside bounce on the downside. After a range bound action in the last few sessions, the market is now showing signs of revisiting its crucial support of around 16800 levels in the short term.

The positive sentiment created by the upside recovery of Monday has been nullified on Tuesday and this market action is now unfolding the negative sequence like lower tops and bottoms on the daily chart. After the formation of lower top at 17428-6th Oct, the Nifty is expected to slide down to the recent lows in the coming sessions.

Conclusion: The short term trend of Nifty remains weak and the downside momentum has started to pick up from the lower highs. One may expect Nifty to slide down to the important support zone of around 16800-16700 levels in the next few sessions, before showing another round of upside bounce from the lows. Immediate resistance is placed at 17130-17150 levels.

Source : Equity Bulls

Keywords

TechnicalWrap Nifty Sensex HDFCSecurities