Technical Wrap - Oct 25, 2022 - HDFC Securities

Mr. Subash Gangadharan, Senior Technical and Derivative Analyst, HDFC Securities

Markets ended with losses on Tuesday. The index opened higher, but selling pressure emerged from the highs and pulled the index lower. The Nifty finally lost 74.4 points or 0.42% to close at 17,656.35. Broad market indices like the BSE Mid Cap index ended higher, thereby outperforming the Sensex/Nifty. Market breadth was negative on the BSE/NSE.

Zooming into 15 minute chart, we see that Nifty opened higher, but selling pressure emerged from the highs and pulled the index lower thereby erasing the morning gains. The Nifty nevertheless remains in a short term uptrend as it has moved above the previous swing highs of 17429 and made higher bottoms over the last few weeks. The Nifty has also closed above a downward sloping trend line that has held down the highs of 2021 and 2022.

While the Nifty looks set to move higher towards the previous intermediate highs of 18096, the index could witness a mild correction in the very near term. It is important that the Nifty can hold above the immediate supports of 17607-17503 for the uptrend to continue.

Conclusion: While the Nifty remains in a short term uptrend and looks set to move higher towards the previous intermediate highs of 18096, it is important that on any mild corrections the index holds above the immediate supports of 17607-17503 for the uptrend to continue.

Source : Equity Bulls

Keywords

TechnicalWrap Nifty Sensex HDFCSecurities