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Daily Technical View on Nifty

Observation: After showing higher level weakness on Tuesday, Nifty witnessed a sustainable upside bounce on Wednesday and closed the day higher by 178 points. Nifty opened on a positive note, started with upside bounce amidst volatility after opening. The upside movement with volatility continued for the whole session and Nifty closed near the highs.

A long bull candle was formed on the daily chart, that has almost engulfed the negative candle of previous session. Technically, this indicate a negation of bearish formation and signal positive bias for the market ahead.

The formation of long bull candle on Wednesday above the important hurdle of 15850-15900 levels indicate possibility of sharp upside breakout. The said area of 15800-15900 has been a significant value area in the past and the recent down side breakout has resulted in a formation of long bear candle (16th June). Hence, a sustainable move above 15950 levels could mean sharp upside for the market ahead.

Conclusion: The short term trend of Nifty has turned positive and the overall chart pattern hint at a possibility of sharp upside breakout of the hurdle.

The next upside levels to be watched around 16200- 16300 in the short term. Immediate support is placed at 15900 levels.

Nifty – Daily Timeframe chart

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