Technical Wrap - Dec 9, 2022 - HDFC Securities

Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After showing range bound movement at the support of 18550 levels in the last few sessions, Nifty slipped into sharp weakness on Friday and closed the day lower by 112 points. After opening with a positive note, the market failed to sustain the opening gains and started with gradual weakness in the early-mid part of the session. The weakness got intensified in the afternoon and reasonable upside recovery has emerged from the intraday lows towards the end.

A long negative candle was formed on the daily chart with minor lower shadow. Technically, this pattern indicates downside breakout of the range bound movement of the last few sessions. This is not a good sign and point towards more weakness in the short term.

Nifty on the weekly chart formed a reasonable negative candle this week, that placed beside the long bull candle of last week. This signal that the market is now preparing for more weakness in the next week.

Conclusion: The short term uptrend status of Nifty seems to have reversed down. Having moved below the crucial support of 18550-18500 levels, the Nifty is expected to slide down to the next key lower support of 18150-18100 levels in the near term. Immediate resistance is placed at 18600-18650 levels.

Source : Equity Bulls

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TechnicalWrap HDFCSecurities Nifty Sensex