Technical View - July 13, 2020 - Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After showing weakness on Friday, Nifty witnessed upmove amidst a volatility on Monday and closed the day decently higher by 45 points. A small negative candle was formed with upper and lower shadow. This pattern indicates continuation of broader range movement around 10700-10900 levels.

Nifty has been resisting at the key hurdle of 10850 levels over the last few sessions, but there is no emergence of sharp selling interest from this resistance. This is positive indication and signals that the said range movement could eventually result in an upside breakout. Hence, a sustainable move above this range could open further upside for the market ahead.

Positive sequential movement like higher tops and bottoms continued in Nifty on the daily chart and the recent minor swing low of 10676 of 8th July could now be considered as a new higher low of the sequence. A decisive move above 10900 could open up a move towards new higher top.

Daily 14 period RSI is placed at 60 and is turning up gradually. As per its formulation, its uptick from near 60-65 levels could mean a strengthening of upside momentum in the underlying.

The short term trend of Nifty continues to be range bound. There is a chance of upside breakout attempt above 10900 levels in the next few sessions. A sustainable move above 10900 could pull Nifty towards the next upside resistance of 11250 levels in a short period of time. Immediate support is placed at 10750.

Source : Equity Bulls

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