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

After showing an upside bounce on Thursday, Nifty witnessed follow-through upmove on Friday amidst a range movement and closed the day higher by 69 points. After opening on a positive note, the market slipped into minor intraday decline in the early part before displaying a sustainable upside bounce. The upmove with range bound action continued for the whole session and the opening upside gap has been filled.

A small positive candle was formed with lower shadow as per daily timeframe chart. Technically this action indicate a buy on minor dips opportunity in the market. Though this pattern resembles a formation of negative hanging many type formation, but having this pattern formed at the wrong place, the negative implication is ruled out.

Nifty made a swing high of around 15870 on Friday and this possibly signal repeated testing of key overhead resistance around 15900 levels. Technically, such repeated testing's of overhead resistances could eventually result in an upside breakout of the said hurdle. Hence, a decisive move above 15900 could open more upside in the short term.

A long bull candle was formed on the weekly chart, after the consolidation movement of the previous two weeks. This is positive indication as per larger timeframe chart.

Conclusion: The underlying short term trend of Nifty continues to be positive with range bound action. The market is now placed to show upside momentum above the hurdle of 15900 levels in the coming few sessions. A sustainable move above this area could open further upside towards 16200 in the near term. Immediate support is placed at 15770.

Source : Equity Bulls

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