Technical Wrap - June 19, 2023 - HDFC Securities

Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities on today's market performance.

After showing a sustainable upmove on Friday, Nifty slipped into weakness amidst a range movement on Monday and closed the day lower by 70 points. After opening with a positive note, the market made an attempt to move up in the early part of the session. Intraday weakness got triggered from the swing high of 18881 levels and the market continued its weakness with range bound action for better part of the session.

A reasonable negative candle was formed on the daily chart at the swing high. This pattern is signaling a formation of bearish dark cloud cover type candle pattern. Technically, any sharp follow through action on the downside post this pattern indicates near term top reversal pattern for the underlying.

Nifty is currently placed at the key resistance of around 18900 levels, which is near the important top of 1st of Dec 22 at 18887. The market has been showing sustainable uptrend over the last few weeks and bearish patterns in between have not been impacted much, as we observe lack of sharp selling interest in the market. The immediate support of 10 day EMA is intact for the last 15 sessions and 20day EMA has not been violated on the down side since past three months.

The near term uptrend status of Nifty remains intact. There is a possibility of upside bounce from the lows in the next 1-2 sessions. Immediate support is at 18670 and strong hurdle is placed at 18900 levels.

Source : Equity Bulls

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TechnicalWrap Nifty Sensex HDFCSecurities