Technical View - June 2, 2021 - Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After showing higher level weakness on Tuesday, Nifty slipped into intraday weakness on Wednesday, but able to show fine upside recovery in the day and closed on a flat note. After opening on a negative note, Nifty slipped into a sharp intraday weakness in the early mid part of the session. Strong intraday buying has emerged in the afternoon to later part of the session and the market has completely erased the fall and closed in a green towards the end.

A small positive candle was formed with long lower shadow, which indicates a buy on dips opportunity in the market. This also indicate lack of selling enthusiasm in the market after a sharp rise and at the new highs. This is positive indication.

Wednesday's upside bounce after intraday weakness could be considered as a small higher bottom formation at 15460 of the sharp uptrend, as per daily chart. The display of inherent strength in the market could be evident by positive market breadth and also out performance of broad market indices like midcap 100 and small cap 100 of NSE with benchmark Nifty.

Nifty on the weekly chart formed a reasonable bullish candle so far this week. The three weekly bullish candle on the higher side signal chances of bullish pattern unfolding 'three advancing soldiers' as per weekly timeframe chart. Confirmation of this pattern could be arrived on the weekly close of Nifty.

Conclusion: The short term trend of Nifty continues to be positive. The lack of selling interest near the all time highs with positive market breadth signal more upside in the short term. The upside target of Nifty remains intact at 15800-15900. Immediate support is now at 15460.

Source : Equity Bulls

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