Technical Wrap - June 3, 2022 - HDFC Securities

Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After showing a fine upside recovery from the lows on Thursday, Nifty shifted into a higher levels weakness on Friday and closed the day lower by 43 points. After opening with an upside gap of 133 points, the market started with gradual weakness from the highs in the early to mid part of the session. The weakness got strengthened during mid to later part of the session and the Nifty closed near the lows. The opening upside gap has been filled completely.

A long negative candle was formed on the daily chart after opening higher. Technically, this pattern indicate a formation of counter attack of bears type candle pattern (not a classical one) at the highs. But, the formation of such pattern amidst a range movement rules out any sharp negative impact as of now.

Nifty encountered the hurdle of 200 day EMA and also a valuation resistance around 16800 levels on Friday. Any rise from here could find selling pressure emerging again from near 16800 levels, unless the hurdle is broken out decisively on the upside. Nifty on the weekly chart formed a small bull candle with upper shadow. This pattern signal presence of crucial resistance at the highs.

Conclusion: The near term uptrend status of Nifty remains intact and there is no sign of any reversal yet from the highs. Further weakness from here could find strong support around 16400-16350 levels and the Nifty could show upside bounce from the lower levels. Sustainable upmove could only resume above the hurdle of 16800 levels.

Source : Equity Bulls

Keywords

TechnicalWrap Nifty Sensex HDFCSecurities