Technical View - June 1, 2021 - Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After showing a fine upmove in the last four sessions, Nifty shifted into a consolidation on Tuesday and closed the day with minor negative note. After opening on a positive note on Tuesday, Nifty shifted into further upside and registered a new all time high at 15660 levels in the early part of the session. Intraday profit booking has emerged from the new highs, but the sharp intraday weakness was absent from the highs. Intraday range movement continued till the end of the session.

A small negative candle was formed at the new highs with minor upper and lower shadow, as per daily timeframe chart. Technically, this pattern indicate tiredness in the market after a strong upmove of Monday. This consolidation movement so far not showing any negative implication on the trend and the market could resume its uptrend soon.

The upside breakout of previous high of 15431-16th Feb remains intact and there is no signs of any false upside breakout unfolding. This could eventually results in further upside in the market in the near term. The positive sequence of higher tops and bottoms is absent, as there is no reasonable decline in the market since past 7-8 sessions to call for any higher bottom. This could mean that the current upside could be a last up leg before showing any reasonable weakness and this could continue for some more period to form new all time highs.

Conclusion: Tuesday's consolidation movement has not changed the positive sentiment created in the market. The next upside levels to be watched for Nifty at 15800 levels, which could be reached in the next 3-4 sessions. At the same time, one needs to be cautious about long positions at the new highs. Immediate support is placed at 15500 levels.

Source : Equity Bulls

Keywords