Technical Wrap - July 18, 2022 - HDFC Securities

Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After showing a sustainable upmove from the lows on Friday, Nifty witnessed sharp upmove on Monday and closed the day higher by 229 points. After opening with an upside gap of 95 points, the market shifted into a gradual upmove in the early mid part of the session. The upside momentum got strengthened in the mid to later part and the market closed near the highs. The opening upside gap remains unfilled.

A long bull candle was formed on the daily chart with gap up opening. This pattern signal a fresh upside breakout in the market after a reasonable downward correction. The positive sequence of higher tops and bottoms is intact as per daily chart and the recent swing low of 15858 levels of 14th July could now be considered as a new higher bottom of the sequence.

The Nifty is currently placed at the key overhead resistance of previous opening downside gap of 13th June and also last swing high of around 16200-16300 levels. A sustainable move above this area could pull Nifty towards further swing highs.

Conclusion: The short term trend of Nifty is positive. Having placed at the edge of upside breakout of the hurdle 16200-16300 levels, one may expect further upside in the market for short term. The next upside levels to be watched around 16500-16600 in the near term. Immediate support is placed at 16200 levels.

Source : Equity Bulls

Keywords

TechnicalWrap Nifty Sensex HDFCSecurities