Market Commentary

Technical Wrap - July 28, 2023 - HDFC Securities

Posted On : 2023-07-28 22:37:05( TIMEZONE : IST )

Technical Wrap - July 28, 2023 - HDFC Securities

Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After showing weakness from the highs on Thursday, Nifty slipped into decline on Friday, but was able to show decent upside recovery to close the day off the lows. After opening with a slightly negative note, the market slipped into further weakness in the early part of the session. Sustainable upside recovery has witnessed during later part of the session.

A small candle was formed on the daily chart with lower shadow. Technically, this pattern indicates a formation of doji type candle pattern (not a classical one). Normally, such doji pattern formation post reasonable upmove and down moves calls for caution for impending reversals. Hence, this doji pattern formation after one session of decline of Friday signal possibility of minor upside bounce in the short term.

After the positive chart pattern like higher tops and bottoms on the daily, Nifty seems to have formed a new lower high on Thursday, which reflects ongoing downward correction in the market. This is also suggesting a possibility of selling pressure emerging on any upside bounce from here.

Conclusion:Nifty continues to be in a short term downward correction and this consolidation is likely to continue for next week. Any upside bounce from here could encounter strong resistance around 19750-19800 levels. The next crucial lower supports to be watched around 19500-19450 levels.

Source : Equity Bulls


TechnicalWrap Nifty Sensex HDFCSecurities