Technical View - June 10, 2021 - Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities
(Time Zone: UTC)
After showing sharp weakness from the new highs of 15800 levels on Wednesday, the bulls seems to have comeback on Thursday, as Nifty closed the day with decent gains of around 102 points. After opening on a positive note on Thursday, Nifty shifted into a gradual upmove amidst a range movement which continued for the whole session. Intraday minor dips were used as buy on dips opportunity.
A reasonable positive candle was formed with minor lower shadow as per daily timeframe chart. This candle was placed in the middle of the long negative candle of previous session. This inside day pattern signal a lack of follow-through sell off in the market and this is positive indication.
After the formation of reversal type candle pattern on Wednesday, Nifty showing subsequent upside bounce could signal chances of negation of this reversal pattern (on the move above 15800 levels). Such negation of bearish pattern is likely to open more upside in the near term.
The minor degree of higher highs and higher lows continued on the daily chart and Wednesday's low of 15566 could now be considered as a new higher bottom of the sequence. Hence, present up leg is expected to move into a new all-time highs by surpassing 15800 levels in the coming session.
Conclusion: The short term uptrend status of Nifty remains intact and the recent weakness is expected to be overtaken in the short term. A sustainable move above 15800 is expected to open another 200-300 points upside for the market ahead. Crucial support is placed at 15600.