Market Commentary

Technical Wrap - June 13, 2022 - HDFC Securities

Posted On : 2022-06-13 18:09:53( TIMEZONE : IST )

Technical Wrap - June 13, 2022 - HDFC Securities

Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After showing weakness in the last few sessions, Nifty displayed violent decline on Monday and closed the day with deep cut of around 427 points. Nifty opened on a downside gap of 324 points, started to show further weakness amidst range movement for the better part of the session. New swing low was formed at 15684 levels and the market showed minor upside recovery towards the end. The opening downside gap remains unfilled.

A long negative candle was formed on the daily chart at the lows with long lower shadow. Technically, this pattern reflects ongoing down trend in the market and an attempt of downside breakout of the support of around 16700 levels. Formation of long lower shadow signal an emergence of minor buying interest from the lows.

A negative reversal type candle pattern was formed on the weekly chart with gap down opening. Nifty is now placed at the edge of crucial support at 15650-15700 levels. Previous opening gaps on the weekly chart have been filled soon after the opening in the past. This market action raises hopes for buy on dips opportunity.

Conclusion: The short-term trend of Nifty continues to be negative. Having reached a crucial lower support of 15700 levels and a formation of unfilled weekly opening downside gap, there is a possibility of an upside bounce from the lows of around 15500-15400 levels in the next 1-2 sessions.

Source : Equity Bulls


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