Technical View - June 4, 2021 - Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

The choppy movement continued in the market on Friday and the Nifty closed the day lower by 20 points. After opening on a positive note, Nifty made an attempt to move up in the early part of the session. It made a new high at 15733 levels and showed minor weakness from the highs. The range movement continued for the whole session.

A small negative candle was formed with minor lower shadow. Technically this pattern indicate range bound movement in the market at the higher levels. The formation of lower shadows in the last 4-5 sessions signal a buy on dips opportunity in the market.

Though, Nifty placed at the new highs, there is no indication of any reversal pattern unfolding at the highs, which signal lack of selling enthusiasm in the market at the new highs/after a reasonable upmove. Now minor higher highs and higher lows is going on as per daily chart in the last couple of weeks. Hence, any minor weakness from here could be a buy on dips opportunity for the short term.

Nifty on the weekly chart formed a reasonable bull candle. Technically, this pattern signal a formation of 'three advancing soldiers' which is uptrend continuation pattern.

Conclusion: The short term up trend status of Nifty remains intact and the last two sessions consolidation movement has not changed the positive sentiment of the market. The next upside levels to be watched around 15800-15900 levels, before showing any downward correction from the highs. This could be achieved by next week. Immediate support is placed at 15600 levels.

Source : Equity Bulls

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