Technical View - July 6, 2020 - Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

Nifty witnessed another sharp up trended movement on Monday and closed the day on a smart upside gains of 156 points. A small positive candle was formed with gap up and with minor upper and lower shadow. Technically, this pattern indicates an uptrend continuation pattern.

Monday's opening upside gap remains unfilled and there was no substantial intraday dips in the trading hours of the day. Minor intraday corrections towards the end has been absorbed to make an intra day base to move up further. Nifty made a new swing high at 10810 levels and closed near the highs.

The overall market breadth continued with positive and broad market indices like NSE midcap 100 and small cap 100 closed higher by 1.69% and 1.82% respectively.

The key overhead resistance of 10650-10700 (resistance as per change in polarity) has been broken on the upside and Nifty sustained above it so far. This is positive indication and this sustainable upside breakout could lead towards the next crucial upside resistance of 11250 levels (opening downside gap of 6th March 20).

The short term trend of Nifty continues to be positive. Next upside targets to be watched 11250 in the next one week. Important support is placed at 10650.

Source : Equity Bulls

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