Technical Wrap - June 2, 2023 - HDFC Securities

Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

The range bound action continued in the Nifty for the second consecutive sessions on Friday and Nifty closed the day higher by 43 points. After opening with an upside gap of 63 points, the market was not able to sustain the opening gains for longs and slipped into minor intraday weakness and filled the opening upside gap in the early part. Minor upside recovery was seen in the mid to later part and Nifty closed the day off the highs.

A small negative candle was formed on the daily chart with minor upper and lower shadow. Technically, this pattern indicates formation of inside bar with overlapping candles. The positive chart pattern like higher tops and bottoms continued as per daily timeframe chart and present consolidation could be in line with the higher bottom formation of the pattern. The higher bottom reversal pattern has not been confirmed yet.

Nifty as per weekly chart formed a small negative candle with minor upper and lower shadow. By considering previous consolidations in the recent past and the negations of such bearish patterns subsequently, one may expect upside bounce in the market in the coming week. Immediate support is at 18400-18300 band and the next upside hurdle is around 18650-18850 levels.

Source : Equity Bulls

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TechnicalWrap HDFCSecurities Nifty Sensex