Technical View - May 25, 2021 - Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

Nifty continued to show choppy movement on Tuesday and the market closed the day higher by 10 points. After opening with a positive note, the Nifty shifted into an intraday range movement for the better part of the session. Minor intraday weakness got triggered in the afternoon and the market finally closed the day on a minor upside recovery note. The opening upside gap has been filled completely.

A long negative candle was formed with minor lower shadow. New swing high was formed on Tuesday at 15293.85 levels. Technically, this pattern signal a range bound action in the market. This market action is not showing any bearish implication to the short term uptrend status of the market and the eventually, the market can bounce from the lows.

Nifty is now encountering resistance at the previous swing highs at 15300-15450 levels. If the market fails to show any sharp weakness in the next couple of sessions, then one may expect a sharp upside bounce once again from the lows. The positive sequence of higher tops and bottoms is intact and further consolidation from here could form a new higher bottom of the sequence.

Conclusion: The short term trend of Nifty remains positive. There is a possibility of further consolidation or minor weakness in the next 1 or 2 sessions before showing upside bounce from the lows. Immediate support is placed at 15130.

Source : Equity Bulls

Keywords