Technical Observation - Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

The upside momentum continued in the market for the third consecutive session and Nifty closed the day decently higher by 90 points. A long bull candle was formed after opening lower, which indicates buy on dips action in the market.

Nifty is now heading towards the immediate resistance of 9730-50 levels (trend line resistance and previous opening downside gap of 4th May). Hence, one may expect minor profit booking at the highs, which is likely to be a buy on dips opportunity.

Nifty as per weekly chart formed a long bull candle, which was after the formation of bullish hammer type candle pattern of last week. This could be an indication of near term bottom reversal at the swing low of 8806.

The short term trend of Nifty continues to be positive. The next upside levels to be watched around 9750-9800 in coming sessions. Any downward correction towards 9400 could be a buy on dips opportunity for the next week.

Source : Equity Bulls

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