Technical View - June 11, 2021 - Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After showing sustainable upside bounce on Thursday, Nifty shifted into a follow-through upmove on Friday amidst a range bound action and closed the day higher by 61 points. Nifty opened on an upside gap of 59 points, made an attempt to move up in the early part of the session. New all time high was formed at 15835 and the market slipped into minor intraday correction from the highs. The range movement with positive bias continued in the second half and the market finally closed on an upside recovery note. The opening upside gap has been filled completely.

A small body of positive candle was formed with minor upper and lower shadow on the daily chart. Technically, this pattern indicate a formation of doji type pattern at the new highs (not a classical one). Normally, a formation of doji after a reasonable decline or at the new highs signal a caution for bulls at the highs. A decline in the subsequent session could only considered as a reversal pattern. On the other side, a sustainable move above the high of doji (15835) is likely to negate the negative implication and could bring bulls back into action.

Nifty on the weekly chart formed a small positive candle with minor lower shadow. We observe four back to back positive candles on the weekly chart without any reasonable downward correction. This market action is also point towards bullish 'three advancing soldiers' pattern, which is uptrend continuation pattern.

Conclusion: The short term uptrend continued in the market after one day of recent dips. Though, momentum on the upside has slowed down, the market breadth remains intact and there is no indication of any profit booking or reversal emerging from the highs. The next upside levels to be watched around 16000 and immediate support is placed at 15690. Request you to incorporate the same in your markets story today if possible.

Source : Equity Bulls

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