Market Commentary

Technical Wrap - June 8, 2023 - HDFC Securities

Posted On : 2023-06-08 16:44:00( TIMEZONE : IST )

Technical Wrap - June 8, 2023 - HDFC Securities

Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After showing a sustainable upmove towards the hurdle of 17800 levels on Wednesday, Nifty slipped into weakness on Thursday and closed the day lower by 91 points. After opening with a flat note, the market made an attempt to move up in the early-mid part of the session. Sharp intraday weakness has emerged from the new swing high of 18777 levels. Intraday upside recovery of mid part has failed to sustain and Nifty closed near the lows.

A reasonable negative candle was formed on the daily chart with upper shadow. Technically, this pattern indicates rejection of bulls at the highs and this could be considered as a short term reversal pattern on the down side.

The Nifty has been moving up as per bullish pattern like higher tops and bottoms in the last few weeks on the daily timeframe chart. Thursday's swing high could be considered as a new higher top of the sequence and further weakness for short term is expected to be a higher bottom of the sequence. At the lows, Nifty could find cluster support like ascending trend line, 10 day and 20 day EMA around 18560-18450 levels.

Source : Equity Bulls


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