Technical Wrap - June 15, 2023 - HDFC Securities

Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After showing sustainable upmove in the last three sessions, Nifty slipped into weakness from the swing highs on Thursday and closed the day lower by 67 points. After opening with a positive note, the market made an attempt to move up in the early part of the session. It made a new swing high at 18794 levels and continued with weakness for rest of the session.

A long negative candle was formed on the daily chart, which is signaling a formation of bearish engulfing pattern at the highs. The formation of high wave pattern on Wednesday and bearish engulfing pattern of Thursday indicates short term top reversal pattern for the Nifty.

The positive chart pattern like higher tops and bottoms continued as per daily timeframe chart and Thursday's high of 18794 levels could now be considered as a new higher top of the sequence. Hence one may expect further weakness in the short term to form a new higher bottom at the lows.

The near term uptrend of Nifty remains positive and present weakness is expected to find support around 18500 levels in the next few sessions. However, a decisive move below 18500 is expected to open sharp weakness in the near term.

Source : Equity Bulls

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TechnicalWrap Nifty Sensex HDFCSecurities