Market Commentary

Technical Wrap - Dec 5, 2022 - HDFC Securities

Posted On : 2022-12-05 18:34:46( TIMEZONE : IST )

Technical Wrap - Dec 5, 2022 - HDFC Securities

Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After showing a reasonable weakness on Friday, Nifty shifted into a range bound action on Monday and closed the day off the intraday loss. After opening with a slightly positive note, the market slipped into weakness in the early-mid part of the session. It later shifted into a gradual upside recovery with range bound action in the later half.

A small negative candle was formed on the daily chart with long lower shadow. Technically, this market action signal a formation of bullish hammer type candle pattern. Normally, such candle pattern after a reasonable decline calls for caution for short positions and more often results in upside bounces from the lows.

Nifty sustained on a immediate support of 10day EMA and also a trend line support as per the concept of change in polarity as per daily chart. The positive chart pattern like higher tops and bottoms continued on the daily chart and the low of Monday at 18591 is likely to be a new higher bottom of the sequence.

Conclusion: The minor downward correction in Nifty is about complete and the market is set to show upside bounce from the lows in the short term. We expect 18550-18600 levels to be a support for the market to show upside bounce from the lows.

Source : Equity Bulls


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