Market Commentary

Technical Wrap - Jan 11, 2023 - HDFC Securities

Posted On : 2023-01-11 19:53:46( TIMEZONE : IST )

Technical Wrap - Jan 11, 2023 - HDFC Securities

Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After showing sharp weakness on Tuesday, Nifty shifted into a consolidation on Wednesday and closed the day lower by 18 points amidst a choppy session. Nifty opened on a flat note, slipped into weakness soon after the opening. It later shifted into a narrow high low range, which lasted till the end.

A small negative candle was formed on the daily chart with minor upper and lower shadow. Normally such actions are considered as a high wave type candle patterns and they indicate high volatility in the underlying. But, having formed this pattern at the support post weakness of one session, this signal minor halt in the underlying trend of market at the important support.

Nifty has repeatedly been testing the support of 17800 levels by forming lower highs. The market action of the last 2-3 weeks also signal a formation of triangle type pattern and the Nifty is now placed at the lower end of a triangle.

Conclusion: The short-term trend of Nifty continues to be negative with choppy movement. Having failed to show any sustainable upside bounce from the lower supports recently, the odds of decisive downside breakout below 17800 levels is higher in the near term. Immediate resistance is placed around 18000 levels.

Source : Equity Bulls


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