Market Commentary

Technical Wrap - Dec 8, 2023 - HDFC Securities

Posted On : 2023-12-08 21:59:33( TIMEZONE : IST )

Technical Wrap - Dec 8, 2023 - HDFC Securities

Mr. Nagaraj Shetti, Senior Technical Research Analyst, HDFC Securities

After showing consolidation movement in the last couple of sessions, Nifty maintained positive bias on Friday amidst high volatility and closed the day higher by 68 points. After opening with a positive note, the market moved up further and registered new all-time high of 21006 levels in the early part of the session. Intraday selling pressure has emerged from the new highs in the mid part, but the market showed smart upside recovery in the later part and Nifty closed the day off the lows.

A small positive candle was formed on the daily chart with upper and lower shadow. Technically, this pattern indicates a formation of high wave type candle pattern. This market action reflects high volatility at the new highs.

Normally, such high wave candle formations at the swing highs or at the hurdle more often acts as a top reversal post confirmation. But, having formed this pattern amidst range movement, the negative pattern implication could be less.

The near-term uptrend status of the market remains intact and present consolidation or minor weakness could eventually result in Nifty resuming its sharp upside further in the short term. The next overhead resistance to be watched around 21550 (78.6% Fibonacci extension) and immediate support is at 20850 levels.

Source : Equity Bulls


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