Technical View - June 22, 2020 - Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities
The uptrend continued in the market for the third consecutive sessions on Monday and Nifty closed on a decent gains of 66 points amidst a volatility. A small negative candle was formed today with upper and lower shadow. Technically this pattern indicates a formation of doji type candle pattern (not a classical one) at the swing high of 10393. Technically, this pattern signals alert for long positions, there is a possibility of minor reversal from here or from the highs. Confirmation is required for reversal.
The key overhead resistance of 10330 (previous swing high of 8th June and previous opening downside gap of 12th March) has been reached and the opening downside gap has been filled completely today. But, Nifty failed to close above the hurdle of 10330 levels on Monday.
Positive sequential movement like higher tops and bottoms is intact and presently Nifty is moving towards the area of new higher top. Still there is no confirmation of any reversal pattern at the highs.
The short term trend of Nifty is intact. A sustainable move above 10350 could open further upside towards 10550-10600 levels in this week. Any failure to sustain above 10330 levels could trigger minor downward correction in the market. Immediate supports to be watched at 10250.