MENU

Published on 18/09/2020 4:44:42 PM | Source: HDFC Securities Ltd

Technical Quote On Today`s Market Performance 18 September 2020 by Mr. Nagaraj Shetti, HDFC Securities

Follow us Now on Telegram ! Get daily 10 - 12 important updates on Business, Finance and Investment. Join our Telegram Channel  https://t.me/InvestmentGuruIndia 

Download Telegram App before Joining the Channel

Below is the Views On Technical Quote On Today`s Market Performance by Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After showing weakness on Thursday, Nifty continued to show range bound movement for the better part of Friday's session and witnessed high volatility towards the end. A negative candle was formed with minor lower shadow. Technically, this pattern indicate a range movement in the market with weak bias.

 

Nifty continued to rest on the support of 200 day EMA and has failed to show any significant upside bounce from there. We observe 7-8 sessions of range movement on the daily chart and that has eventually resulted in a downside breakouts, after opening highs for few occasions and upside breakouts have failed to sustain. Hence, one needs to be cautious about 1-2 range movements and any sell on rise (from new swing highs).

 

A doji or a high wave type candle pattern was formed on the weekly chart. Nifty shifted into a minor upside bounce after the formation of crucial reversal pattern like bearish engulfing pattern on week before last, as per weekly chart. Hence, as long as the high of this pattern is protected at 11800 levels, we are unlikely to see any sustainable upside bounce in the near term.

 

The short term trend of Nifty continues to be range bound with negative bias. There is a possibility of continuation of range movement for the next 1-2 sessions and there is a higher possibility of a retest of recent swing highs of 11600-620 levels before showing yet another sharp weakness from the highs by next week. Immediate support is placed around 11400-11350 levels.

 

Above views are of the author and not of the website kindly read disclaimer