Technical Wrap - Dec 16, 2022 - HDFC Securities

Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After witnessing a sharp weakness on Thursday, Nifty continued with its downside momentum on Friday and closed the day lower by 145 points. After opening with a negative note, the market made an attempt of upside recovery from the lows in the early part, but the selling has emerged during upside recovery attempts and the market closed near the lows.

A small negative candle was formed on the daily chart with long upper shadow. Technically this market action indicates sell on rise and downward continuation pattern. This is negative signal and more weakness could be in store. The negative chart pattern like lower top has been confirmed at 18696-14th Dec and further weakness from here could signal a formation of new lower bottom of the sequence on the daily chart.

Nifty on the weekly chart was formed similar pattern that of daily (small negative candle with long upper shadow), which indicates presence of key resistance around 18700 levels. Having moved below the crucial immediate support of 18500 levels, as per weekly chart, the Nifty could slide down to the next important support of 18100-18000 levels in the coming week. Immediate resistance is at 18450-18500 levels.

Source : Equity Bulls

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TechnnicalWrap HDFCSecurities Nifty Sensex