Technical View - June 2, 2020 - Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

The upside momentum continued in the market for the fifth consecutive sessions today and Nifty closed the day higher by 1.56%. A long positive candle was formed on Tuesday. that moved into a new swing high of 9995 levels.

Currently, Nifty placed at the crucial overhead resistance of 10,000 levels (resistance as per weekly/monthly timeframe chart, as per the concept of change in polarity). Previously, Nifty has reversed its trend decisively on the upside from near this area (in March and Nov 2018). Hence, Nifty sustaining above 10K mark is going to be crucial for further upside.

Though, Nifty placed at the hurdle, there is indication of any reversal pattern at yet at the highs.

The short term trend of Nifty continues to be positive. A sustainable move above 10K mark is expected to pull the market towards next upside region of 10,500 in the next 1-2 weeks. Unable to move above 10,000 levels is likely to trigger downward correction from the highs. Immediate support is placed at 9865.

Source : Equity Bulls

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