Technical Wrap - July 13, 2022 - HDFC Securities

Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

Nifty continued to show weakness on Wednesday amidst range movement and closed the day lower by 91 points. After opening with an upside gap of 70 points, the market has started to show weakness from the highs from the early-mid part of the session. The downside momentum has picked up in the afternoon to later part and Nifty finally closed near the lows.

A long negative candle was formed on the daily chart, that has overlapped the previous negative candle. Technically, this market action signal continuation of downside momentum and a lack of strength to sustain the highs.

After the upside breakout of crucial resistance of down sloping trend line at 16100 levels on 8th of July, the market has failed to sustain the gains and slipped into weakness since then. The current pattern suggest a false upside breakout of the trend line resistance. On the other side; smaller degree of higher tops and bottoms is intact and present weakness seems to be in line with the new higher bottom formation. But, there is no confirmation of any higher bottom reversal as of now.

Conclusion: The short term trend of the market continues to be weak. Nifty is currently placed at the key lower support of 16000 levels. A decisive move below this support could drag Nifty down to the next support of 15700 levels. A sustainable upside could resume above 16150 levels.

Source : Equity Bulls

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TechnicalWrap Nifty Sensex HDFCSecurities