Technical Wrap - July 6, 2022 - HDFC Securities

Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After showing higher level weakness on Tuesday, Nifty witnessed a sustainable upside bounce on Wednesday and closed the day higher by 178 points. Nifty opened on a positive note, and started with an upside bounce amidst volatility after opening. The upside movement with volatility continued for the whole session and Nifty closed near the highs.

A long bull candle was formed on the daily chart, that has almost engulfed the negative candle of the previous session. Technically, this indicates a negation of bearish formation and signals positive bias for the market ahead.

The formation of a long bull candle on Wednesday above the important hurdle of 15850-15900 levels indicates the possibility of a sharp upside breakout. The said area of 15800-15900 has been a significant value area in the past and the recent downside breakout has resulted in the formation of the long bear candle (16th June). Hence, a sustainable move above 15950 levels could mean a sharp upside for the market ahead.

Conclusion: The short-term trend of Nifty has turned positive and the overall chart pattern hint at a possibility of a sharp upside breakout of the hurdle. The next upside levels to be watched are around 16200-16300 in the short term. Immediate support is placed at 15900 levels.

Source : Equity Bulls

Keywords

TechnicalWrap HDFCSecurities Nifty Sensex