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Daily Technical View on Nifty

Uptrend continuation pattern..

Market: Observation:

The upside momentum with range bound action continued in the market on Wednesday and the Nifty closed the day with another gain of 162 points.

After opening with an upside gap of 168 points, the market moved up further and registered new all-time high at 24307 in the early part of the session. It later shifted into an intraday range movement with positive bias for mid to later part of the session and the opening upside gap remains unfilled.

A small negative candle was formed on the daily chart with gap up opening (body gap, not a western gap) at the new highs with minor lower shadow.

Though, this market formation looks like a doji type pattern or a consolidation at new highs, but the underlying trend of the market remains positive. Presently such consolidations or minor dips are eventually resulting in an uptrend continuation pattern.

Conclusion:

Having reached near to the overhead resistance of around 24400 levels (1.618% Fibonacci Extension), the market could shift into further consolidations/range bound movement in the short term before showing further upmove in the near term.

A decisive move above 24400 levels could open the next upside target of 24900 levels (1.786% Fib. Extension) in the coming week. Immediate support is placed at 24110 levels.

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