IGI Logo

Daily Technical View on Nifty

Choppy movement at the hurdle..

Observation: After showing sharp upmove on Monday, Nifty shifted into a choppy movement with positive bias on Tuesday and closed the day higher by 62 points. After opening with a downside gap of 91 points, the market started to show upside recovery since opening. Minor intraday dips in between have been bought into and Nifty finally closed near the highs. The opening downside gap has been filled completely.

A long bull candle was formed on the daily chart, that has placed beside the similar long bull candle of Monday. Technically, this pattern signal a range bound action or consolidation movement at the hurdle. The crucial overhead resistance like 16250-16300 levels have been surpassed gradually. Technically, such choppy movement/range bound action during upside breakout of important resistance is not a good sign for bullsto sustain the highs.

The larger degree of lower tops and bottoms is intact as per weekly chart. Present upmove could be in line with the formation of new lower top of the sequence. But, still there is no confirmation of any lower top formation atthe highs.

Conclusion: The short term uptrend status of Nifty remains intact. But, the lack of strength in the upside momentum could bring bears into action from the higher levels. A decisive move above 16300 levels is likely pull Nifty towards another hurdle of 16500- 16600 levels in the near term. Immediate support is placed at 16200 levels.

Nifty – Daily Timeframe chart

To Read Complete Report & Disclaimer Click Here

Please refer disclaimer at https://www.hdfcsec.com/article/disclaimer-1795

SEBI Registration number is INZ000171337

Views express by all participants are for information & academic purpose only. Kindly read disclaimer before referring below views. Click Here For Disclaimer