Technical Wrap - Dec 15, 2022 - HDFC Securities

Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After the formation of indecision type of candle pattern like doji on Wednesday, Nifty witnessed sharp weakness on Thursday and closed the day lower by 245 points. After opening with a weak note, the market continued its downside momentum for the early to mid part of the session. The weakness got intensified in the later part and Nifty closed near the lows.

A long bear candle was formed on the daily chart on Thursday, post small upside bounce of few sessions. Technically, this pattern indicates a sharp downward reversal in the market after the formation of lower top on Wednesday at 18696 levels. This is not a good sign and indicates more weakness in the short term.

Conclusion: The short term trend of Nifty seems to have reversed down after a small pull back rally recently. The immediate support is placed at 18350 levels and a move below this support could drag index down to the next support of around 18150-18100 levels in the short term. Immediate resistance is placed at 18550 levels.

Source : Equity Bulls

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TechnicalWrap HDFCSecurities Nifty Sensex