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Published on 2/09/2020 4:42:08 PM | Source: HDFC Securities Ltd

Technical Quote On Today`s Market Performance 2st September 2020 by Mr. Nagaraj Shetti, HDFC Securities

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

Nifty continued with follow-through upmove amidst a range movement on Wednesday and closed the day higher by 64 points. A small positive candle was formed with minor lower shadow, which indicates sustaining of bulls above the crucial support.

 

Formation of this pattern, after a doji of 1st Sept could indicate minor positive bias for the market. But, the significant bearish pattern (bearish engulfing pattern of 31st Aug) could be intact as long as the market stays below 11800 levels. The Nifty is currently sustaining above the up trend line support (connecting recent higher lows) and 20 period EMA around 11340-11380 levels.

 

The minor positive sequence of higher highs and lows is intact and if we consider the recent swing low of 11326 (low of 31st Aug) as a new higher low of the sequence, then the Nifty should conquer new swing highs above 11796 levels in the near term. This action seems to be difficult task as of now. Hence, one needs to be cautious about long positions above 11600 levels. 

 

The short term trend of Nifty continues to be positive. The market is gradually gaining some momentum on the upside. The underlying near term trend status remains weak and there is a chances of profit booking emerging at the higher levels. Important supports to be watched around 11350-11400. The next upside resistance to be watched at 11600.

 

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