Technical Wrap - July 5, 2023 - HDFC Securities

Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After showing high volatility at the hurdle of 19450 levels on Tuesday, Nifty continued to show consolidation movement on Wednesday and closed the day higher by 09 points. After opening with a slightly weak note, the market shifted into a narrow high low range for better part of the session. Intraday buying has emerged from the lower range of 19340 levels in the later part and the market closed near the highs.

A small positive candle was formed on the daily chart with long lower shadow. Technically, this pattern indicates hanging man type formation at the highs (not a classical one), which is back to back for 2 sessions. Normally, such patterns at the swing high calls for a caution for bulls for longs. A confirmation of underlying movement below the low of the pattern could activate the bearish set up for the underlying.

The overall uptrend status of Nifty remains intact. Though, market placed at the new highs, the selling pressure has not been emerging from near the hurdle. If such pattern continues for the next 1-2 sessions, without showing any further damages, then that could eventually result in a sharp upside bounce in the market. Immediate support is at 19300 levels.

Source : Equity Bulls

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TechnicalWrap Nifty Sensex HDFCSecurities