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Daily Technical View on Nifty

Breather pattern at the hurdle..

Observation: After showing sharp upmove on Tuesday, the upside momentum continued on Thursday with volatility and Nifty finally closed the day higherby 57 points.

After opening with a positive note, the market made an attempt to move above 17400 levels in the early part of the session. It failed to sustain the highs and later showed intraday consolidation or minor weakness from the highs in the mid to later part of the session.

A small negative candle was formed on the daily chart with upper shadow. Technically, this pattern indicates a breather type formation post sharp upside bounce fromthe lowersupports of 16800 levelsrecently. The market is currently facing resistance around 17450-17500 levels as per the concept of change in polarity. Though, Nifty placed at the resistance, there is no formation of any significant reversal pattern at the highs. Thisis positive signal.

Conclusion: The short term uptrend of Nifty remains intact. There is a possibility of minor consolidation in the next 1-2 sessions around the hurdle of 17400-17500 levels before showing a decisive upside breakout of the said resistance. Immediate support is placed at 17220 levels.The near term upside targets to be watched around 18100 levels.

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