Technical View - June 15, 2021 - Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities
(Time Zone: UTC)
After showing a massive intraday upside recovery from the lows on Monday, Nifty continued its follow-through upmove amidst a range movement on Tuesday and closed the day higher by 57 points. After opening on a positive note, Nifty continued its upmove with narrow intraday range for the whole session. New high was registered at 15901 and the market was not able to show any remarkable upmove for the rest of the session. Intraday dip of mid part was used for a buy.
Another small body candle was formed at the highs on the daily chart with almost identical open and close. This candle pattern signal a formation of doji type pattern (not a classical one) at the new highs. This pattern again raises concern for bulls to sustain the higher levels.
We observe a formation of doji, hanging man and again doji patterns in the last three sessions around 15800-15900 levels. All these pattern at the highs indicate weak bias for the market. Though, Nifty placed at highs, there is no confirmation of any reversal pattern at the highs. Presently, the 10 day EMA is offering good support for the market over the last few weeks and that support is now placed at 15700 levels. As long as this support holds, one may remain bullish in the market for short term.
Conclusion: The short term trend of Nifty continues to be positive with range bound action. The overall chart pattern of Nifty indicate a chances for further consolidation or minor weakness from the highs in the next 1-2 sessions. Immediate support is placed at 15700.