Technical View - June 8, 2020 - Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After witnessing a decent upside bounce on Friday, Nifty continued with optimistic movement at the opening part today, but was not able to sustain the early gains. It shifted into an intraday range move towards the end of Monday's session and closed on a minor gains of 25 points.

A long negative candle was formed on Monday, after opening higher. The opening upside gap has been filled completely and Nifty closed near the gap area. Nifty has encountered key upside resistance of previous opening downside gap of 12th March at 10335. Technically this pattern signal minor profit booking from the key overhead resistance.

Nifty sustaining above the recent upside broken hurdle (10,000) in the last four session is positive indication (resistance as per weekly chart-change in polarity). Hence, any further downward correction from here could find strong lower support around 10000-10050 levels in the short term.

The short term trend of Nifty continues to be positive with range bound action. Though, Nifty placed at the crucial gap resistance (of 12th March), still there is no indication of any reversal signal at the highs. Immediate resistance remains at 10350 and the nearest support is placed at 10050.

Source : Equity Bulls

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