Technical Wrap - June 12, 2023 - HDFC Securities

Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After showing weakness with range bound action in the last couple of sessions, Nifty halted short term down trend on Monday amidst choppy movement and closed the day higher by 38 points. After opening with a positive note, the market has shifted into a gradual upside bounce within a narrow range movement. The range bound movement with positive bias continued in the mid to later part of the session.

A small positive candle was formed on the daily chart with minor upper and lower shadow. Technically this market action indicates doji or high wave type candle pattern (not a classical one). This pattern indicates halt in few sessions minor weakness that started from the swing highs.

The immediate supports like daily 10day and 20day EMAs are offering base for the Nifty since past two months. The positive chart pattern like higher tops and bottoms is also intact and the recent weakness from the highs could be in line with the new higher low formation of the pattern. The higher bottom reversal needs to be confirmed with positive close by next session.

The overall chart pattern signal chances of an upside bounce in the coming session. Immediate support is at 18500 levels and crucial overhead resistance is placed at 18800 levels.

Source : Equity Bulls

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TechnicalWrap HDFCSecurities Nifty Sensex