Technical View - July 2, 2020 - Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

Nifty witnessed sustainable follow-through upmove on Thursday, after the firm upside bounce of Wednesday and closed the day higher by 121 points. A reasonable long candle was formed on Thursday with minor upper shadow. Technically, this pattern signals positive trend with minor profit booking at the highs.

Nifty moved above the recent swing high of 10553 (24th June) and made a new swing high of 10597 and closed just below it. This is positive indication, as the market has not slipped into sharp profit booking, after moving into a new swing high territory.

A sustainable move above 10553 could mean a negation of previous negative candlestick pattern of bearish engulfing (of 24th June). Technically, such negation of bearish patterns could signal a possibility of sharp upside movement in the short term (above 10553).

The positive chart pattern like higher tops and bottoms continued and presently Nifty is in the process of forming a new higher top of the sequence. But, still there is no indication of any reversal at the highs.

The short term trend of Nifty continues to be positive. The next upside resistance to be watched around 10650-10700, which could be achieved in the next few sessions. Key lower support is placed at 10450.

Source : Equity Bulls

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