Technical View - July 8, 2020 - Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After showing sustainable upmove in the last few sessions, Nifty slipped into profit booking mode on Wednesday and closed the day lower by 93 points. A long bear candle was formed; which signal beginning of profit booking in the market from the new swing high of 10847 levels. This could be considered as a short term reversal in the market.

Positive sequential movement like higher tops and bottoms continued in the Nifty as per daily time frame chart. Today's swing high of 10843 could now be considered as a new higher top of the sequence. Hence, there is a possibility of further weakness in the short term.

The short term trend of Nifty seems to have reversed down from the swing high. One may expect further weakness in the short term. The intermediate trend of Nifty continues to be positive for the Nifty and weakness down to 10550-10500 could now be a buy on dips opportunity.

Source : Equity Bulls

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