Technical Wrap - July 4, 2023 - HDFC Securities

Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

The upside momentum continued in the market for the sixth consecutive sessions on Tuesday and Nifty closed the day with gains of 66 points amidst volatility. After opening with an upside gap of 84 points, the market slipped into minor weakness in the early part of the session. It later shifted into an upside recovery mode from the days low and closed near the highs. New all time high was registered at 19434 levels.

A small body of negative candle was formed on the daily chart with long lower and minor upper shadow. Technically, this market action signal hanging man or a high wave type candle formation at the new highs. After the unfilled gaps of the last three sessions, Nifty filled the opening upside gap of Tuesday. Technically, this pattern indicates tiredness in the market at the highs. Hence, there is a possibility of further consolidation or minor weakness in the next 1-2 sessions.

The positive chart pattern like higher tops and bottoms is intact as per daily timeframe chart and any weakness from here is likely to be a buy on dips opportunity. On the upper side, the area of 19450-19500 could be a strong overhead resistance.

Source : Equity Bulls

Keywords

TechnicalWrap HDFCSecurities Nifty Sensex