Technical View - June 23, 2021 - Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities
(Time Zone: UTC)
After showing higher level weakness from around 15900 levels on Tuesday, Nifty slipped into weakness amidst a range movement on Wednesday and closed the day lower by 85 points. After opening on a positive note, the market has failed to sustain the highs and slipped into weakness in the early part of the session. It later shifted into a gradual further weakness with range bound action for the remaining part of the session. The opening upside gap has been filled completely.
A long negative candle was formed, which engulfed the previous small negative candle of Tuesday. This signal weakness with range bound action. Wednesday's pattern seems to have confirmed the double top formation as per intraday (60 min) timeframe chart. The negative implication of this intraday double top seems to have priced in partially and some more weakness could be in store.
The crucial daily support of 10 day EMA has been violated again on the downside at 15720 and the next support of 20 day EMA is now placed at 15610 to offer support for the market on further weakness from here.
Conclusion: The short term trend of Nifty is weak with range bound action. The overall market breadth and broad market indices are showing resilience compared to benchmark Nifty. The present weakness is expected to be over in the next 1-2 sessions and the market could bounce up again from the lows. Immediate support is placed at 15600 levels.