Technical Wrap - July 4, 2022 - HDFC Securities

Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

The range-bound action with positive bias continued in the market on Monday and Nifty closed the day decently higher by 83 points. After opening on a weak note, the market slipped into further weakness soon after the opening. It later shifted into an upside recovery mode and the upmove continued till the end.

A long bull candle was formed on the daily chart, which signals a broader range movement of 15900-15700 levels and the market is placed at the upper range. After the formation of hammer-type candle pattern on Friday, a sustainable upmove in Nifty on Monday suggests a sharp upside bounce in the market ahead.

After the false upside breakout of the crucial overhead resistance of 15850 levels (resistance as per the concept of change in polarity) on 27th June, the market has shifted into a range movement and repeatedly tested the hurdle in the last few sessions. The positive sequence of higher tops and bottoms is intact and one may expect more upside to form a new higher top of the sequence in the next few sessions.

Conclusion: The short-term trend of Nifty continues to be positive with range movement. The market is now showing signs of witnessing a decisive upside breakout of the important resistance of 15900 levels in the next 1-2 sessions. A sustainable upmove above 15900-15950 is expected to pull Nifty towards the next resistance of 16300 in the short term. Immediate support is placed at 15750.

Source : Equity Bulls

Keywords

TechnicalWrap Nifty Sensex HDFCSecurities