Technical Wrap - June 8, 2022 - HDFC Securities

Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

Weakness with choppy movement continued in the market on Wednesday and Nifty closed the day lower by 60 points. After opening on a positive note, the Nifty slipped into weakness soon after the opening. Sharp intraday recovery observed in the mid part, but the Index failed to sustain the upside recovery, it showed weakness towards the end to close near the lows.

A reasonable negative candle was formed on the daily chart on Wednesday, which has placed beside the small negative candle of previous session. This pattern indicate choppy movement in the market with negative bias.

After the announcement of RBI's mid quarter policy around 10 am, the market showed swift intraday upside recovery, but that intraday momentum has failed to sustain the highs. The positive chart pattern like higher tops and bottoms is intact as per daily chart and current weakness could be a part of new higher bottom formation. Still there is no confirmation of any higher bottom reversal in the market.

After moving below the crucial support of 16400 levels (support as per change in polarity), the Nifty has not witnessed any intense selling pressure in the last 2 sessions, which is slightly positive for the market. The current choppy movement could extend for another 1-2 sessions and the lows to be watched around 16200 levels. Strong overhead resistance is placed at 16450-16500 levels.

Source : Equity Bulls

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TechnicalWrap Nifty Sensex HDFCSecurities