Technical Wrap - July 18, 2023 - HDFC Securities

Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After showing decisive upside breakout of the narrow range movement at 19550 levels on Monday , Nifty continued with upside momentum on Tuesday with high volatility and closed the day with minor gains of 37 points. After opening with an upside gap of 76 points, Nifty moved up further in the early part of the session. New all time was registered at 19819 levels and the market slipped into weakness from the highs in the mid part of the session. The opening upside gap has been filled completely.

A small negative candle was formed on the daily chart with minor upper and lower shadow. Technically, such patterns are called as high wave type candle patterns. By nature, the formation of high wave at the hurdle/swing highs reflect high volatility and some time act as a reversal pattern, post confirmation.

Presently, Nifty is in a sharp up trended movement in the last couple of months and has witnessed limited downward corrections in between. The positive chart pattern like higher tops and bottoms continued as per daily timeframe chart. Hence, any formation of major reversal pattern is ruled out and one may expect consolidation or minor weakness in the next 1-2 sessions.

The near term trend of Nifty remains up and any consolidation from here could be a buy on dips opportunity. Immediate support is placed at 19550-19600 levels and the upper area of 19800-19850 could act as a short term resistance.

Source : Equity Bulls

Keywords

TechnicalWrap Nifty Sensex HDFCSecurities