IGI Logo

Below is Quote on Market Wrap Up 04 July 2023 By Mr. Rajesh Bhosale, Technical Analyst at Angel One Ltd

Despite muted morning sentiments across the board, the benchmark index Nifty experienced fourth consecutive session with a gap-up opening. However, unlike the previous sessions, prices dipped during the morning session, erasing the initial gains. Nevertheless, there was a strong recovery later on, surpassing the morning highs. There was some tentativeness in the market at higher levels, as the choppy session ended with a modest gain of 0.34%, a tad below 19400.

The bullish trend continued for the sixth session in a row, but this time it appeared to be driven by a select few heavyweight stocks rather than a broad-based movement. There was also some hesitancy at higher levels, as indicated by the "Dragonfly Doji" candlestick pattern on the daily chart. As mentioned in our previous outlook, the upward trend is expected to continue in the near future due to a significant breakout on higher timeframe charts. However, given the recent strong surge, indicators are entering an overbought territory, and prices are significantly deviating from the 5EMA, indicating the possibility of occasional dips or sideways consolidation in the short term. In such a scenario, it is advisable for traders to secure some profits and consider any dip as a buying opportunity. The support levels to watch are the bullish gap left yesterday around 19200 – 19250 followed by strong support at the psychological level of 19000. On the upside, the immediate resistance is at 19500 – 19540 in the uncharted zone.

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