Technical Wrap - May 11, 2023 - HDFC Securities

Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

Nifty continued to show consolidation movement at the highs on Thursday and closed the day lower by 18 points. After opening with a positive note, the market was not able to sustain the opening gains and slipped into weakness soon after the opening. It later moved into a narrow range for better part and closed near the lows.

A small negative candle was formed on the daily chart with minor upper and lower shadow. Technically, this pattern indicates a formation of high wave type candle formation, but not a classical one.

Though Nifty placed at the crucial overhead resistance of 18300 levels, still there is no indication of any strength required for decisive upside breakout. The formations of doji/spinning top or high wave candle patterns back to back at the hurdle signal possibility of reasonable downward correction ahead. However, a decisive move above 18400 levels is likely to change the short term negative sentiment on the positive side. Immediate support is placed at 18150 levels.

Source : Equity Bulls

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TechnicalWrap Nifty Sensex HDFCSecurities