Technical Wrap - Dec 21, 2022 - HDFC Securities

Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After showing a sustainable upside bounce from the support of 18200 levels in the last couple of sessions, Nifty slipped into sharp weakness with high volatility on Wednesday and closed the day lower by 186 points. After opening with a positive note, the Nifty failed to sustain the gains and started with declines from the highs. The weakness got intensified with high volatility in the afternoon to later part of the session and Nifty closed near the lows.

A long negative candle was formed on the daily chart, which signal an attempt of downside breakout of the immediate support of 18200 levels. The negative chart pattern like lower tops and bottoms continued and Tuesday's swing high of 18473 could now be considered as a new lower top of the sequence. Hence one may expect further weakness in coming session.

Nifty is nearing a crucial long term support around 18100-18050 levels, which is a cluster support of ascending and horizontal trend lines on the weekly chart and also weekly 10 period EMA. Hence, there is a possibility of buying emerging from the lows in the next few sessions. Immediate hurdle is placed at 18300 levels.

Source : Equity Bulls

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