Technical View - June 5, 2020 - Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After showing minor weakness in the last couple of sessions, Nifty witnessed a decent comeback on Friday and closed the day higher by 113 points. A reasonable positive candle was formed today, that is currently placed at the edge of showing upside breakout of a small range at 10175 levels. This is positive indication.

The previous couple of sessions minor decline after a sharp rise of one week signals an inherent strength in Nifty and one may expect further upside in the near term.

Nifty closed above the key overhead resistance of 10,000 levels (according to weekly/monthly timeframe charts), as per weekly closing. This pattern indicates an emergence of strong upside momentum in the market and lack of selling participation after a sharp rise. The formation of long bull candle on the weekly chart signal a decisive upside breakout of the hurdle (10K) and one may expect further upside in the next week.

The next upside levels to be watched around 10550-10600 in one week. Immediate support is placed at 10050.

Source : Equity Bulls

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