Technical View - June 11, 2020 - Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After showing range bound action on Wednesday, Nifty witnessed sharp sell off on Thursday and closed the day lower by 214 points. A long bear candle was formed on Thursday, that closed below the immediate support of 10000 levels. Technically, this pattern signal continuation of profit booking in the market.

We observe a larger degree positive sequence of higher tops and bottoms on the daily chart and present weakness (from the swing high of 10328 of 8th June) could be a part of higher bottom formation. More weakness is likely in the short term before showing any higher bottom reversal at the lows.

The key lower support of 10,000 (support as per weekly and monthly chart as per the concept of change in polarity) has been broken down in this week, after sustaining above it in last week. Hence, more weakness could be expected in coming sessions. The next lower levels to be watched around 9600, which is an opening upside gap of previous week and this could be achieved in the next 3-4 sessions. Any attempt of upside bounce is likely find key overhead resistance around 10000-10050 levels (as per role reversal).

Source : Equity Bulls

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