Technical View - May 26, 2021 - Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

The upside momentum continued in the market with range bound action on Wednesday and Nifty closed the day higher by 93 points. After opening on a positive note, Nifty moved up further in the early part of the session, before shifting into a narrow intraday range movement. The market closed near the upper end of the day. A reasonable positive candle was formed with minor lower shadow. This pattern indicate a comeback of bulls after a higher levels weakness of previous session. This is positive indication.

Nifty is now placed at the resistance zone of around 15350-15450 levels (previous swing highs of Feb-March 21) and previously, the market has witnessed sharp profit booking from the highs in the past. Nifty not showing any sharp reversal from the highs so far could be a positive indication. As long as this strength of uptrend continues for the next 1-2 sessions, one may expect a decisive upside breakout of the hurdle at 15450 levels.

Wednesday's new swing high at 15319 could open chances for a new higher top formation (as per the bullish sequence of higher tops and bottoms on the daily chart). But, we need confirmation with regards to weakness from the highs to call this as a negative reversal pattern.

Conclusion: The short term trend of Nifty continues to be positive amidst a range movement. Now the market is placed at the crucial juncture of overhead resistance around 15350-15450 levels. If Nifty sustains around this highs for the next couple of sessions, then that could open doors for an upper target of 15800 levels. Any profit booking from the hurdles could be a buy on dips opportunity for short term. Immediate support is placed at 15200-15150 levels.

Source : Equity Bulls

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