Technical Wrap - Nov 1, 2022 - HDFC Securities

Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

The sharp upside momentum continued in the market for the second consecutive sessions on Tuesday and Nifty closed the day with handsome gains of around 133 points. After opening with an upside gap of 118 points, the market showed intraday consolidation in the early-mid part of the session. The buying has emerged from the intraday lows in the mid to later part of the session and the opening upside gap has been filled partially.

A small positive candle was formed on the daily chart with minor upper and lower shadow and the opening upside gap of the last two sessions remains intact. The Nifty sustained above the hurdle of 18096 levels on Tuesday, which is the previous top of mid part of Sept 22. This is positive indication and one may expect further swing highs in Nifty.

The candle pattern of Tuesday indicates a formation of high wave and this reflects a volatility in the market at the highs. Normally, such high wave formations at the highs/hurdles indicates caution for longs. But, still there is no confirmation of any reversal pattern unfolding at the highs. The next upside levels to be watched around 18500 and immediate support is placed at 18080 levels.

Source : Equity Bulls

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TechnicalWrap Nifty Sensex HDFCSecurities