Below is the Technical Quote On Today’s Market Performance by Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities
After showing consolidation type movement in the last session, Nifty continued with an excellent upmove on Tuesday and closed the day on a hefty gains of 159 points. A long bull candle was formed, that surpassed the key overhead resistance of 10330 levels (previous opening downside gap of 12th March and recent swing high of 8th June) and Nifty closed above it. This is positive indication.
Today, Nifty negated the bearish impact of doji pattern of Monday and closed above the high of that pattern at 10393 levels. Normally such negation of negative patterns more often results in a sharp movement in the opposite direction (bullish movement expected here).
The positive sequential movement like higher tops and bottoms continued in Nifty on the daily timeframe chart and is currently placed towards a formation of new higher top of the sequence. Still the uptrend has not completed and we expect Nifty to show minor trend reversal at the highs of around 10600-10650 levels in the next few sessions.
The short term trend of Nifty continues to be positive. The upside target of 10600-10650 is intact for the next few sessions, before showing any profit booking from the highs. Immediate supports to be watched around 10360-10380 levels.
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