Technical Wrap - July 11, 2022 - HDFC Securities

Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After showing a sustainable upmove in the last three sessions, Nifty slipped into minor weakness amidst range movement on Monday and closed the day lower 04 points. After opening on a weak note, the market shifted into an upside recovery with range bound action which continued till mid part of the session. Sharp upside recovery has witnessed in the mid to later part and Nifty finally closed near the highs.

A long bull candle was formed on the daily chart after opening lower. This pattern signal a consolidation in the market after a recent sharp upmove. This is positive indication and signal lack of selling participation in the market at the hurdle of 16200-16300 levels.

After the upside breakout of the down sloping trend line in last week, Nifty showing minor weakness with range bound action suggests that the market could find strong support at the previous upside breakout area around 16050 levels, as per change in polarity. This pattern also coincides with the positive chart movement like higher tops and bottoms on the daily chart, with new higher bottom formation near 16K mark.

Conclusion: The short term uptrend status of Nifty remains intact and the market is taking temporary halt before showing further upmove in the near term. Hence, the current range movement within 16100-16250 levels is likely to extend for the next session. A sustainable move above 16300 could be viewed as strengthening of upside momentum.

Source : Equity Bulls

Keywords

TechnicalWrap HDFCSecurities Nifty Sensex