Technical Wrap - July 8, 2022 - HDFC Securities

Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

The upside momentum continued in the market for the third consecutive sessions on Friday and Nifty closed the day higher by 87 points. After opening with an upside gap, the market erased morning gains soon after the opening and later shifted into a range bound action for better part of the session. Intraday buying has emerged towards the end and Nifty closed near the highs. The opening upside gap remains partially filled.

A small negative candle was formed at the highs on the daily chart with minor lower shadow. Technically, this pattern signal a continuation of upside momentum in the market. The two back to back unfilled opening upside gaps of the last two sessions indicate positive outlook for the market ahead.

Nifty sustained above the important resistance of previous opening down gap of 13th June at 16170 levels and closed higher. Previously, none of opening downside gaps have been taken out decisively on the upside in last couple of months. If Nifty manages to stay above 16200 levels and moves up in the next 1-2 sessions, then that could mean an important trend reversal on the upside for Nifty as per smaller and larger timeframe chart.

Conclusion: The short term trend of Nifty continues to be positive. Having sustained above the crucial hurdle at 16170 levels, there is a possibility of Nifty moving towards the next upside resistance of 16500 levels by next week. Immediate support is placed around 16150-16100 levels.

Source : Equity Bulls

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TechnicalWrap Nifty Sensex HDFCSecurities