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Daily Technical View on Nifty

Bulls.. finally in drivers seat

Observation: After showing weakness on Monday, Nifty witnessed sharp U turn on Tuesday and closed the day with hefty gains of around 386 points. After opening with an upside gap of 260 points, the market continued its upward journey amidst range movement for better part of the session. Upside gained momentum towards the end and Nifty closed near the highs. The openingupside gap remains unfilled.

A long bull candle was formed on the daily chart with gap up opening (body gap, not a western gap). This indicates an upside breakout of the larger consolidation movement around 16800-17200 levels. The immediate hurdle of previous opening gap of 26th Sept has been filled on Tuesday at 17290 levels. This is positive indication and a sustainable move above 17300 levels could be asharperone.

Nifty has now respected the important lower support of 16800 levels, as per the concept of change in polarity. As happened in the past, the present upside bounce from this support (16800) could hint at a possibility ofsustainableupmovein the nearterm.

Conclusion: The short term trend of Nifty has turned up sharply post upmove above the broader range movement ofthe lastfew sessions. A decisive move above 17300 is likely to pull Nifty towards the next crucial resistances of around 17600 and further 18000 levels in the near term. Immediate supportis placed at 17150 levels.

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