Nifty could take a break from time to time, said Gaurav Ratnaparkhi

Gaurav Ratnaparkhi, Head, Technical Research Officer, Sharehan of BNP Paribas, says the sharp rally at Nifty three weeks ago has extended short-term momentum indicators in the most purchased area suggesting that the index could see some consolidation.

Ratnaparkhi said the break would be short and Nifty would restart its forward march. Edited quotes:
It was a historic week in the Indian market as Nifty surpassed the critical range of 15,700. What led to the price action?

The Nifty50 appeared in the merger phase in mid-May. It has exceeded the upper limit of the downtown channel and the 15,000 sign.

Since then the index has been well matched. The expansion of Bollinger Bands daily and weekly helped a rise in prices.
As a result, Nifty50 exceeded the all-time high of 15,431 and continued to achieve the next target of 15,700

After hitting a record high of 15,733 on June 4 Nifty saw a profit booking submit a policy. Can we say that it is possible to hit the top? Are there any signs in the chart?

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The Nifty50 saw a sharp rally three weeks ago. As a result, short-term pressure indicators have been extended to more space.
This comment, coupled with the fact that the index has reached 15,700 critical levels, suggests that Nifty could see a shorter consolidation.

Having said that, what we expect is a small break, which can be seen from time to time. Once that’s done, Nifty is expected to go up.

In terms of sector, BSE assets and consumer firms accounted for more than 6 percent until June 3. What led to the price action?

The BSE realty index after adjustments during the period March to April saw a good foundation formation over the 40 WEMA road with a low weekly Bollinger Band. These two parameters in combination serve as good support and the same is seen in this case.

There, the guide saw a sharp meeting. Strong consumer index was adjusted in time rather than in price correction. It entered the merger mode in mid-February which lasted until mid-May.

Since the second half of May, the index has resumed a sharp rise. Both of these indicators are expected to remain in the direction from the top from the short to the middle.

What are the key levels to follow next week at Nifty?

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The daily pressure indicator is pushed to a higher position, and the hourly pressure indicator indicates a negative variable. At the same time, the weekly pressure index caused a bullish crossover.

Therefore, the multi-timeframe analysis suggests that Nifty could see a brief combination of the next two or three sessions, which will be followed by the next leg at the top.

Therefore, depositing at a minimum of 15,460 can be considered an opportunity to buy a new one. On the higher side, 15,700-15,750 will serve as the nearest obstacle area

Small & midcaps work better. What fuels the rally in a wide market space?

The small and medium space saw the merger between March-April. However, they came out of the assembly before Nifty.

Over the past few weeks the broader market is seeing a strong rally supported by various technical parameters. Structurally, these indices form an expansion of the waves at the top, which means that the rally is about to last

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L&T Finance Withholding: Buy | LTP: Rs 97.45 | Stop Loss: Rs 92.50 | Target: Rs 108 | More than 11%

After a sharp fall from March to April, the stock sees an equally sharp recovery. So far, it has fallen to 38.2 percent fall after a fall and is expected to return to a deeper level. The temporal pressure index is associated with recovery

Ashok Leyland: Buy | LTP: Rs 128.40 | Stop Loss: Rs 123 | Target: Rs 144 | More than 12%

Post a split in the Triangle base crash in mid-May, stocks again began to rise sharply. Over the past week, it has created an external bar pattern on the weekly chart, which strengthens the ascent

Dad’s Chemicals: Buy | LTP: Rs 746 | Stop Loss: Rs 712 | Target: Rs 833 | More than 11%
The stock built its base above the 20-week moving average and started a new leg last week. On the way up, it explodes at the station that falls to the last stop. The daily pressure index is associated with an outbreak.

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