Technical View - June 1, 2020 - Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After showing sharp upside bounce in the last week, the upside momentum continued in the market today and Nifty closed the day on an excellent gains of 245 points. A long bull candle was formed on Monday with gap up opening and the upside gap remains unfilled. This is positive indication. Formation of minor upper shadow in today's positive candle could indicate minor profit booking at intraday highs.

Nifty surpassed above the immediate resistance of previous opening down gap and also down sloping trend line around 9750 levels today and closed higher. Though, Nifty placed at the highs, still there is no indication of any reversal pattern at the highs.

Further upside from here could encounter resistance around 9950-10000 levels, which is an upper area of previous downside gap of mid part of March 20. Hence, there is a possibility of minor downward correction from the highs, which could be a buy on dips opportunity in the near term. Immediate support is placed at 9700.

Source : Equity Bulls

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