Technical View - May 6, 2021 - Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities
(Time Zone: UTC)
Nifty showed follow-through upmove on Thursday, after showing an upside recovery from the lows in the previous session and closed the day higher by 106. After opening on a positive note on Thursday, the market moved up gradually for the whole session. Intraday dips in between were used as buying opportunity. Nifty closed near the upper end of the day.
A reasonable long candle was formed with minor lower shadow. Technically. this pattern signal a buy on dips in the market amidst a range movement. The long lower shadow of the last two rising candles shows emergence of buying on intraday dips.
Nifty is now placed at the crucial upper resistance of around 14725 (swing high of 4th May) and a sustainable move above this hurdle could open next upside resistance of around 14900-15000 levels in the short term, before showing a next round of weakness from the highs.
Nifty on the weekly chart is making another attempt of upside breakout of the down sloping trend line around 14700 levels, after failing to sustain above this trend line breakout in last week. This is positive indication.
Conclusion: The underlying trend of Nifty continues to be positive with range bound action. A sustainable move above 14725 is likely to result further strengthening of upside momentum and that is likely to pull the market towards 14900-15000 levels again in the near term. Immediate support is placed at 14610.