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Published on 20/07/2020 4:32:44 PM | Source: HDFC Securities Ltd

Technical Quote On Today`s Market Performance 20 July 2020 by Mr. Nagaraj Shetti, HDFC Securities

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

The upside momentum continued in the market for the third consecutive session on Monday, and Nifty closed the day higher by 120 points. A small positive candle was formed at the highs with lower shadow. This pattern signals a continuation of upside momentum in the market with range bound action. The opening upside gap remains unfilled.

 

The positive sequential movement like higher tops and bottoms continued on the daily chart and Nifty is now placed near to form a new higher top of the sequence. But, still there is no indication of any reversal pattern yet at the highs.

 

Nifty is moving towards a crucial upside zone of opening downside gap resistance at 11250. This gap was formed in 6th March and the sharp weakness has resumed in Nifty after the formation of this opening down gap. Hence, this important event gap could be filled shortly and the area of 11250 is expected to be a strong resistance on the way ahead. Even one may expect reversal around this resistance zone.

 

The long term charts like weekly and monthly timeframe indicates a stretched upside momentum in the market and they signal a chances of sharp turnaround in Nifty from the higher levels. Hence, one needs to be cautious of long positions at the highs.

 

The short term trend of Nifty continues to be positive. One may ride the uptrend and continue long trading positions with the stoploss of 10900 levels. The next crucial resistance to be watched around 11250 in this week. Key support is placed around 10900-10850 levels.

 

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