Technical Wrap - Dec 20, 2022 - HDFC Securities

Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

Nifty witnessed a sustainable upside bounce from the intraday lows on Tuesday and closed the day lower by 35 points post smart upside recovery. After opening with a downside gap of 80 points, the market slipped into further weakness in the early mid part of the session. Sharp intraday upside recovery has emerged from the day's low of 18202 levels and the market closed the day off the intraday lows.

A small positive candle was formed on the daily chart with long lower shadow. Technically, this pattern indicates an emergence of buying interest from the lower levels. The candle pattern of Tuesday signal a formation of bullish hammer pattern that placed beside the long positive candle of previous session.

The negative chart pattern of lower tops and bottoms is intact and the low of Tuesday at 18202 could be considered as a new lower bottom of the sequence. Hence one may expect further upside in the short term towards the lower top formation. Immediate resistance is at 18450-18500 levels.

Source : Equity Bulls

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TechnicalWrap HDFCSecurities Nifty Sensex