Technical View - June 15, 2020 - Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After witnessing a sharp upside bounce on Friday, Nifty slipped into weakness on Monday and closed the day lower by 1.6%. A small negative candle was formed today, that has placed within a long positive candle of Friday. This indicates minor profit booking in the market after sharp upside bounce from the lows.

We observe a formation of higher bottom formation as per intraday timeframe chart like 60 mins at 9726 levels, which suggests a possibility of comeback of bulls from the lower levels.

The larger positive sequence of higher tops and bottoms intact on the daily chart and Friday's low (9545) seems to be a new higher bottom of the sequence. We need confirmation of positive closing to call this as a higher bottom reversal.

The near term uptrend status of Nifty remains intact. Present weakness is expected to end in the next 1-2 sessions and we are likely to see an upside bounce from the lows. Immediate support is placed around 9700 levels.

Source : Equity Bulls

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