Technical Wrap - July 7, 2023 - HDFC Securities

Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After showing a sustainable upside bounce on Thursday, Nifty slipped into sharp weakness from the new all time highs on Friday and closed the day lower by 165 points. After opening with a negative note, the market made an attempt to move up in the early part of the session and registered new all time high of 19523 levels. Selling has emerged from the swing highs and the market continued with weak trend in the mid part of the trend. An attempt of upside recovery in the mid part has resulted in a sell on rise opportunity.

A long bear candle was formed on the daily chart with long upper shadow. Technically this pattern indicates rejection of bulls at the new highs. This could also be considered as a short term top reversal pattern. The positive chart pattern like higher tops and bottoms is intact as per daily chart and present weakness in the market could be considered as a higher top reversal of the pattern. Further weakness is expected to find base for higher bottom formation.

The immediate supports like ascending resistance line as per change in polarity and daily 10 period EMA are placed around 19200 levels, which could be an immediate cluster support for the market on further weakness ahead. Any upside bounce from here could encounter strong hurdle at 19425 levels.

Source : Equity Bulls

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TechnicalWrap Nifty Sensex HDFCSecurities