Technical View - June 22, 2021 - Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities
(Time Zone: UTC)
After showing a fine upside recovery from the lows on Monday, the Nifty continued its follow-through upmove in early part of Tuesday but, intraday profit booking has emerged from near the new highs and Nifty settled the day with minor gains of around 26 points. After opening on an upside gap of 94 points, the market made an attempt to move up in the early part of the session. The intraday weakness got triggered in the mid to later part of the session and the Nifty showed intraday weakness from the highs and filled the opening upside gap completely.
A small negative candle was formed on the daily chart with minor upper shadow. Technically, this pattern indicate a consolidation movement in the market near all time highs. This pattern has not negated the recent comeback of bulls from the lows.
We observe a faster retracement of the recent decline (upward retracement of three day's decline in the last two days), which is positive indication. Though, current intraday pattern (60 min) looks like double top around 15900 levels, there is a higher chances of Nifty showing upside bounce again from here or from the lows to reach to the new highs.
Conclusion: The short term uptrend, after a fine upside bounce of Monday is still intact. Any weakness from here is going to be a buy on dips opportunity for the short term. We expect Nifty to challenge upper 15900 levels again in the next few sessions and a sustainable move above this area could open more upside towards 16200 levels. Immediate support is placed at 15650.