Below is the Views On Technical Quote On Today`s Market Performance by Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities
After showing fine upside recovery from the lows, Nifty witnessed sharp upmove on Friday and closed the day higher by 161 points. A long bull candle was formed, that has just overtaken the resistance of previous swing high at 10900 levels. A long bull candle was formed, which is placed at the edge of showing decisive upside breakout of the upper range around 10850-10900 levels.
The rising wedge type pattern, which was developing in the last three months is still intact and the range of this wedge has been narrowed. Nifty is now placed at the edge of upside breakout of the pattern at 10900-10950 levels. But, one needs to be careful about false upside breakouts. Normally, rising wedge patterns more often leads to a downside breakouts from the highs.
Nifty has witnessed a sharp upside recovery from the lows on the weekly chart and closed near the highs. Technically, this candle pattern could be considered as a high wave type formation at the highs. Nifty is currently placed just above the crucial long term resistance around 10650-10750 (resistance as per the concept of change in polarity).
The near term uptrend of Nifty seems to have sustained after a small dip and one may expect further upside in the coming sessions. The next upside levels to be watched around 11250, which is an opening downside gap of 5th March. Immediate support is placed at 10850. However, having stretched its uptrend above the resistance, one needs to be cautious of longs at the highs. As there is a possibility of reversal from the highs.
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