Below is the technical market quote by Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities
After showing a sustainable upside bounce on Monday, Nifty continued its upside momentum on Tuesday and closed the day with handsome gains of 157 points. After opening on a positive note, nifty made an attempt to move up in the early part of the session. Intraday profit booking has triggered in the early mid part of the session and Nifty showed intraday weakness from the highs. Later on the market sustained the gains and more upside was seen towards the end. The opening upside gap has been filled completely during intraday dip.
A small positive candle was formed with minor upper and lower shadow. Technically, this pattern could be considered as a comeback of bulls from the lows. Further upside from here is expected to result in a reversal of recent down trend of the market.
Nifty is now placed at the verge of moving above and filling the opening downside (26 Feb) and upside (25 Feb) gaps- type of island reversal. Hence, the area of 14920-15065 is expected to be a crucial resistance zone for the market for short term and a sustainable move above 15100 is likely to reverse the trend meaningfully.
Nifty on the weekly chart has taken the support of 10 week EMA around 14350 levels and started to bounce up. Previously, this weekly short term moving average has offered good support for few occasions in past and the market flared up. Presently Nifty is showing sustainable upside bounce, which is likely to bring hopes for bulls for more upside.
Conclusion: The short term trend of Nifty continues to be positive and bulls seems gaining strength in the present upside bounce. The crucial overhead resistance to be watched around 15065 and a decisive move above this gap area could open chances of new highs for the market.
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