Technical Wrap - July 15, 2022 - HDFC Securities

Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After showing weakness with range bound action in the last four sessions, Nifty witnessed a decent upmove on Friday and closed the day higher by 110 points. After opening on a weak note, the market shifted into an intraday consolidation for better part of the session. Sharp intraday buying has emerged in the mid to later part of the session and Nifty closed near the highs.

A small body of positive candle was formed on the daily chart with long lower shadow. Technically, this pattern indicate hammer type candle pattern (not a classical one). Normally, a formation of hammer after a reasonable upmove or decline could indicate possible trend reversal on either side. Hence, one may expect upside bounce from here.

The positive chart pattern like higher tops and bottoms is intact and the swing low of Thursday at 15858 could now be considered as a new higher bottom of the sequence. The said higher low was formed at the key lower support of ascending trend line around 15850 levels (connected from the swing lows of 17th June and 1st July). Hence, this could mean chances of more upside in the short term.

Conclusion: The short term trend of Nifty seems to have reversed on the upside after showing gradual weakness in the last 5 sessions. The formation of positive chart pattern at the key support signal more upside for the market ahead. The next upside levels to be watched around 16250 levels. Immediate support is placed at 15925.

Source : Equity Bulls

Keywords

TechnicalWrap HDFCSecurities Nifty Sensex