Market Commentary

Technical Wrap - October 3, 2023 - HDFC Securities

Posted On : 2023-10-03 17:48:11( TIMEZONE : IST )

Technical Wrap - October 3, 2023 - HDFC Securities

Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After showing a reasonable upside bounce on Friday, Nifty slipped into weakness amidst a range bound movement on Tuesday and closed the day lower by 109 points. After opening with a negative note, the market slipped into further weakness in the early part of the trade. It later shifted into a narrow range movement with weak bias for rest of the session.

A small negative candle was formed on the daily chart, post small upside bounce. Technically, this pattern reflect lack of strength in the market to sustain the highs. The support area on the weekly chart (10 week EMA) has been violated again on the downside at 19560 levels. The overall chart pattern indicates weak bias for the Nifty ahead.

The larger degree of positive pattern like higher tops and bottoms is intact as per daily/weekly chart. As long as Nifty manages to sustain above the previous higher bottom of 19223 levels, the chances of sustainable upside bounce could alive.

Conclusion: The short term trend of Nifty continues to be negative. After showing a lack of strength during recent upside bounce, the market is now placed at the edge of downside breakout of 19500 levels. The next lower levels to be watched at 19225 levels and immediate resistance is placed at 19700 levels.

Source : Equity Bulls


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