Market Commentary

Technical Wrap - Jan 6, 2023 - HDFC Securities

Posted On : 2023-01-06 20:47:35( TIMEZONE : IST )

Technical Wrap - Jan 6, 2023 - HDFC Securities

Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

Nifty continued its downside momentum for the third consecutive sessions on Friday and closed the day lower by 132 points. After opening with a positive note, Nifty made an attempt of upmove soon after the opening. It failed to sustain the opening gains and slipped into weakness in the mid to later part of the session. Intraday upside recovery attempt in between has been used as sell on rise opportunity.

A long negative candle was formed on the daily chart, which indicates downside continuation pattern. Nifty has reached the support of previous swing lows of around 17780 levels and closed near the lows. The lack meaningful upside recovery from the support indicates more weakness ahead.

Nifty as per weekly chart formed a long bear candle this week after a similar bullish candle of last week. Post downside breakout of important support like ascending trend line on the weekly chart at 18200 in week before last, Nifty seems to have finished its pull back rally, as it declined from the highs and is currently placed at the edge of moving below the crucial swing lows around 17780 levels. Any pull back rally from here could encounter resistance around 18050-18100 levels by next week.

Source : Equity Bulls


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