Technical View - May 24, 2021 - Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After showing a fine upside bounce in the last session, Nifty shifted into a high volatility on Monday and closed the day higher by 22 points. After opening on a positive note, Nifty slipped into minor intraday weakness in the early part of the session. Gradual upside recovery was seen for the better part of the session and the intraday selling pressure has emerged again towards the end.

A small negative candle was formed with minor upper and lower shadow. Technically, this pattern indicate a high wave type candle formation. Normally, such a formation of high wave candle at the swing highs or after a reasonable upmove suggest profit booking from the highs. Having placed above the upside breakout of range at 15K mark and the upside breakout of trend line resistance on the weekly chart, we are unlikely to see any sharp weakness from here. One may expect consolidation or minor profit booking in the short term.

The positive sequence of higher tops and higher bottoms is intact as per daily timeframe chart. Present market action signal a possible higher top formation at Monday's high of 15256 levels. We need further weakness to confirm this higher top reversal pattern. As per the bullish pattern, the anticipated weakness could be short lived.

Conclusion: The short term trend of Nifty remains up. Further consolidation or any weakness from here could be a buy on dips opportunity. A sustainable upside breakout of 15K mark and the positive chart pattern of higher tops and bottoms indicate a strength of upside in the market and one may expect upside bounce from the lower levels. Immediate support is placed at 15085.

Source : Equity Bulls

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