Market Commentary

Technical Wrap - Nov 25, 2022 - HDFC Securities

Posted On : 2022-11-26 09:43:54( TIMEZONE : IST )

Technical Wrap - Nov 25, 2022 - HDFC Securities

Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After witnessing a decisive upside breakout of the key hurdle at 18400 levels on Thursday, Nifty seems to have taken breather with small range movement on Friday and closed the day higher by 28 points amidst range movement. After showing weakness in the opening trade on Friday, Nifty shifted into a gradual upside recovery in the early to mid part of the session. It later made an attempt to surge up towards the end but shifted into a consolidation.

A small negative candle was formed on the daily chart with a minor lower shadow. Technically, this pattern signals a breather movement in the market post the sharp up move of last session and this could be considered as an uptrend continuation pattern.

Nifty on the weekly chart formed a long bull candle with lower shadow. After surpassing the hurdle of 18100 levels few weeks back, the market has witnessed a decisive upside breakout of another resistance of 18400 levels in this week and closed higher.

Conclusion: The underlying trend of Nifty continues to be positive. Having surpassed the crucial upper resistance in this week, the Nifty is expected to move into new all-time highs (above 18606 levels) by next week. A sustainable move above 18600 levels is likely to pull Nifty towards the new milestone of 18950 levels in the near term (which is 0.786% Fibonacci extension taken from the June 22 bottom, Sept 22 top and Sept 22 higher bottom, as per weekly chart).

Source : Equity Bulls


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