Technical View - June 4, 2020 - Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After showing weakness from the swing high of 10175 on Wednesday, Nifty slipped into minor weakness today amidst a range movement and closed the day on a slightly loss of 32 points. A small body of negative candle was formed on Thursday, with minor upper and lower shadow. Technically, this pattern could indicate high wave type candlestick formation.

After witnessing a sharp upmove in the last six sessions, Nifty not showing any strength in the decline/profit booking today could be a positive signal for the market ahead. If the selling pressure doesn't emerge in the next 1-2 sessions, then we could see occurrence of sharp upside bounce from the lows.

Nifty is currently placed just above the crucial valuation resistance of around 10,000 mark (as per the concept of change in polarity). If Nifty fails to sustain above 10K mark by next session, then there is a possibility of strengthening of selling from the highs. Immediate supports to be watched at 9850 for the next 1-2 sessions. Strong overhead resistance is placed around 10125-10175 levels.

Source : Equity Bulls

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