Market Commentary

Technical Wrap - July 29, 2022 - HDFC Securities

Posted On : 2022-07-31 14:35:15( TIMEZONE : IST )

Technical Wrap - July 29, 2022 - HDFC Securities

Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

The sharp upside momentum continued in the market for the third consecutive sessions on Friday and Nifty closed the day higher by 228 points. After opening with an upside gap of 149 points, the market continued with its upside journey after the opening. Minor intraday dips in between have been bought into and the Nifty closed near the highs. The opening upside gap remains unfilled.

A long bull candle was formed on the daily chart with gap up opening. The opening upside gaps of the last two sessions remains unfilled. This market action signal sharp upside breakout of the hurdle. The market has moved decisively above the crucial overhead resistance of 16800 levels (resistance as per the concept of change in polarity) as per daily and weekly chart and sustained higher so far.

A long bull candle was formed on the weekly chart, which is back to back for the second weeks. This market action signal an increasing strength of upside momentum in the market post upside breakout, as per smaller and larger timeframe charts.

Conclusion: The underlying trend of Nifty is sharply up. The unfilled opening upside gaps, sharp vertical upmove and the decisive upside breakout of significant overhead resistance indicate more upside ahead for the market ahead. The next upside targets to be watched around 17600-17800 levels in the next few weeks, but minor downward corrections/consolidations in between can't be ruled out. Important support is placed at 16950-16800 levels.

Source : Equity Bulls


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