Technical View - June 21, 2021 - Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities
(Time Zone: UTC)
After showing high volatility on Friday, Nifty witnessed another excellent intraday comeback after sharp lower opening on Monday and closed the day higher by 63 points. Nifty opened on a downside gap of 158 points on Monday and started to show a sustainable upside recovery soon after the opening. The intraday upside bounce continued till later part of the session and the opening downside gap has been filled completely.
A long range bull candle was formed on the daily chart (within a high low range of 260 points) and the Nifty closed at the high of the previous two candle at 15760. This is positive indication and it signal a comeback of bulls from the lower levels. A sustainable move above 15800 levels could open further upside for the market.
The sharp intraday upside bounces from near 15450-15500 levels in the previous couple of sessions indicate a strong support zone for the Nifty at the lows. This could also mean that the swing low of Friday (15450) has confirmed as a higher bottom reversal pattern. Monday's broad based buying in the Nifty has regained the broken supports of daily 10 and 20 period EMA around 15580 and 15710 levels respectively, as per daily timeframe chart.
Conclusion: The short term trend of Nifty has turned up after a dramatic fall and a swift upside bounce of the last two sessions. A sustainable move above 15800 levels is likely to pull the market into new all-time highs in the next few sessions. Any weakness could find support around 15650-15600 levels.