Technical View - May 27, 2021 - Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

The range bound movement with positive bias continued in the market on Thursday and Nifty closed the day higher by 33 points. After opening on a positive note, Nifty shifted into a gradual upmove in the early to mid part of the session. Intraday volatile swing movements has occurred in the afternoon to later part of the session mainly due F&O expiry of May series.

A small body of positive candle was formed at the swing highs with upper and lower shadow, which indicates a formation of high wave type candle pattern. Technically, a formation of such pattern after a reasonable upmove or near the crucial hurdles some time results in a formation of top reversal pattern.

Presently, Nifty is at reasonably highs and near the resistance of previous swing highs of around 15350-15450 levels. We need confirmation of negative close in the subsequent session to call this as a reversal pattern. Hence, long trading positions needs to be careful at the highs.

The positive sequence of higher tops and bottoms continued on the daily chart and present upmove is in line with the formation of new higher top of the sequence. Unless Nifty shows any weakness from the highs in the subsequent session, the uptrend remains to be intact.

Conclusion: The short term trend of Nifty continues to be positive with range bound action. The emergence of volatility near the hurdle and the overall chart pattern could hint at a possibility of minor reversal around 15400-15500 levels in the next couple of sessions. On the other side, a decisive move above 15500 is likely to negate this bearish bet. Immediate support is placed at 15250 levels.

Source : Equity Bulls

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