Technical View - July 9, 2020 - Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After showing negative reversal type candle pattern from the highs on Wednesday, Nifty bounced up smartly on Thursday and almost surpassed the negative candle of Wednesday at 10835. A long positive candle was formed and Nifty is placed near the swing high of 10800-840 levels (resistance of the last three sessions).

Further sustainable move above 10840 could negate the negative implication of bearish engulfing of Wednesday. This is positive indication and such negations more often leads to a sharp upmoves on the higher side.

The positive chart pattern like higher tops and bottoms continued on the daily chart and still there is no confirmation of any higher top reversal at the highs, Further upside from here is likely to encounter the next set of hurdle around 10850-10900 levels in the next 1-2 of sessions.

The short term trend of Nifty continues to be positive. Further sustainable move above 10850-900 levels could take Nifty towards 11250 levels in the near term. Any profit booking from the highs could find support around 10700.

Source : Equity Bulls

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