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Observation:

Nifty continued with positive bias with range bound action on the special trading session of Saturday-18th May and the market closed the day with gains of 35 points.

A small positive candle was formed on the daily chart on Friday with minor upper and lower shadow. Small negative candle was formed on the special trading session of Saturday. Technically, these two candle pattern signal uptrend continuation in the market with range bound action.

Nifty on the weekly chart has bounced back sharply this week. After the formation of long bear candle in the last week, we observe a formation of long bull candle from the lows, which is signaling a bullish Piercing line type candle pattern. This is positive indication and one may expect further upside in the coming week.

The larger range bound action came into play again this week. Nifty bounced back from near the lower range of 21750 this week. Now, all eyes on market reaching the upper range of 22800 levels as per the range pattern target.

Conclusion:

Nifty sustained the crucial lower supports and bounced back sharply. As per the pattern of larger range movement of 22800-21750 levels, Nifty is expected to move towards the upper range of 22800 levels or slightly higher in the next 1 or 2 weeks. Immediate support is at 22200, which can be placed as SL for trading longs

The market is preparing for a big move after the important political event of 4th June (2024 General Election Results). However, exit poll predictions on television around 1st June evening could hint the probable outcome of results.

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