Technical Wrap - Dec 14, 2022 - HDFC Securities

Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After showing a sustainable upmove in the last couple of sessions, Nifty shifted into a consolidation movement with positive bias on Wednesday and closed the day higher by 52 points. After opening with a positive note, the market shifted into a narrow range movement that lasted for the whole session. The opening upside gap has been filled partially.

As small negative candle was formed on the daily chart with minor upper and lower shadow. Technically, this pattern indicates a high wave or doji type candle pattern after a rise. Normally, such candle formations after a reasonable rise signal volatility at the highs and some time, it acts as a reversal pattern post confirmation.

Nifty is now placed at the crucial resistance of 18650 levels and is not showing any strength to surpass the hurdle decisively. A sustainable upmove from here could confirm upside breakout of the resistance and any failure is likely to result in minor downward correction ahead.

Conclusion: The short term trend of Nifty remains positive. A decisive move above 18650-18700 levels could bring bulls back into the market. Any failure to sustain the highs is likely to indicate more consolidation or minor weakness for the short term. Immediate support is placed at 18490.

Source : Equity Bulls

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TechnicalWrap HDFCSecurities Nifty Sensex