Technical View - June 3, 2021 - Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After witnessing high volatility on Wednesday, Nifty showed yet another sustainable move on Thursday and closed the day higher by 114 points. After opening on an upside gap of 79 points, Nifty made an attempt to move up in the early part and it later shifted into a range move for the better part of the session. The intraday buying has emerged towards the end and the Nifty closed near the highs. The opening upside gap remains partially filled.

A small positive candle was formed on the daily chart with lower shadow. Nifty registered another new all time high of 15705 and closed near the highs. Technically, this pattern signal uptrend continuation, after a small intraday dip of previous session.

The positive chart pattern of higher tops and bottoms again came in to scene as per daily chart. Wednesday's low of 15460 could be considered as a new higher bottom of the sequence. Now, the Nifty is moving up to form a new higher top of the sequence, which is yet to be confirmed.

Minor negative divergence has started to form on the daily Nifty/RSI but this pattern needs to be confirmed with down tick in the underlying Nifty in subsequent session. The overall market breadth continues to be positive and broad market indices like small cap and mid caps were seen outperforming the benchmark Nifty by small margin.

Conclusion: The short term trend of Nifty continues to be positive and one may expect further upside in the coming session. Though, Nifty placed at all time highs, there is no indication of any reversal pattern unfolding at the swing highs. The next upside levels to be watched around 15800-15900 levels in the next few sessions. Immediate support is placed at 15575.

Source : Equity Bulls

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