Technical View - June 12, 2020 - Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

Nifty witnessed an excellent upside bounce after opening lower on Friday and closed the day higher by 70 points. Nifty opened on Friday on a sharp weak note amidst a weak global cues. It shifted into a sustainable upside recovery after the opening. The sharp opening downside gap has been filled completely.

A long bull candle was formed at the lows, that has filled in the previous opening gaps of 4th May and 1st June around 9600 levels. The positive sequential movement like higher tops and bottoms continued on the daily chart and today's low at 9545 could now be considered as a higher bottom of the sequence. Further follow-through action could confirm the same.

Nifty as per weekly chart formed a minor negative candle with long lower shadow. This pattern indicates buy on dips action in the market.

The short term trend of Nifty is positive. Having witnessed strength to move up sharply from the lower support of 9550-9600 levels, there is a possibility of some more upside in the near term. Immediate supports to be watched around 9900-9880 and the next upside resistance after 10,000 is placed at 10150, which could be tested in the near term.

Source : Equity Bulls

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