Technical View - May 19, 2021 - Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After showing a fine upmove in the last couple of sessions, Nifty witnessed selling pressure on Wednesday and closed the day lower by 77 points. After opening on a weak note, the market made an attempt to move up in the early part of the session. Higher levels weakness got triggered and the market shifted into a gradual weakness in the afternoon to later part of the session.

A small body of negative candle was formed with upper shadow on the daily chart and this pattern indicate a sell on rise opportunity in the market. The opening upside gap created on Tuesday has been filled partially on Wednesday.

The positive pattern of higher tops and bottoms of minor degree is continued in Nifty as per daily timeframe chart. The swing high of Tuesday at 15137 seems to be a new higher top of the sequence. Hence, one may expect further weakness in the next 1-2 sessions to form a new higher bottom at the lows. This is positive pattern and any weakness from here is going to be a buy on dips opportunity for the near term.

Conclusion: The profit booking has emerged in the market from the highs as anticipated and one may expect further weakness for the next 1-2 sessions to form a new higher bottom. At the lower side, 14900 is expected to act as a crucial lower support and the market is expected to bounce back from the lows.

Source : Equity Bulls

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