Technical Wrap - Dec 23, 2022 - HDFC Securities

Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After showing higher level weakness with range bound action in the last couple of sessions, Nifty witnessed sharp weakness on Friday and closed the day lower by 320 points. After opening with downside gap of 150 points, the market continued its weakness for the whole session. Intraday lower highs and lower lows pattern was observed for the day.

A long bear candle was formed on the daily chart with gap down opening. This pattern indicates a resumption of sharp downside momentum in the market. Nifty broken below the important cluster supports of 18100 levels (ascending trend line and horizontal line as per the concept of change in polarity), as per daily/weekly chart.

Nifty on the weekly timeframe formed a long negative candle, which indicates sharp downside momentum in the market. The larger degree of higher tops and bottoms is still intact and one may expect further weakness in the coming week towards larger higher bottom formation.

Conclusion: The Nifty seems to have turned down as per daily as well as weekly chart. The decisive downside breakout of the crucial support could suggest more weakness for the near term. The next downside levels to be watched around 17400-17350, which are previous opening up gap of mid of Oct 22 and 200 day EMA.

Source : Equity Bulls

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TechnicalWrap HDFCSecurities Nifty Sensex