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Daily Technical View on Nifty

Decisive upside breakout of hurdles..

Observation:Nifty witnessed sharp upside momentum for the third consecutive sessions on Friday and closed the day with hefty gains of 216 points.

A long bull candle was formed on the daily chart with gap up opening, which is for the third consecutive sessions. The opening upside gaps of the last two sessions are unfilled. As per the gap theory, this pattern could be considered as a runaway gap, which reflects uptrend continuation pattern for the underlying.

Nifty witnessed decisive upside breakout of the hurdle of 18900 levels in this week and zoomed into new all time highs, as per weekly chart. The formation of long bull candle during upside breakout signal resumption of sharp up trended movement in the market. The negative candlestick pattern (bearish dark cloud cover) of last week has been taken out decisively on the upside.

Conclusion: The underlying trend of Nifty remains positive. Though, market placed at the highs, there is no sign of any tiredness and no indication of any reversal pattern unfolding at the new highs as of now

There is a higher probability of Nifty reaching upside trajectories of 19500 and next 19800 levels in the July month. Profit booking at the regular intervals is advisable.

Strict stoploss for all long positions to be placed around the important lower supports of 18900-19000 levels.

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