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Below is the Technical Quote On Today`s Market Performance by Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After showing hefty gains on the day of Union Budget -21 on Monday, the Nifty continued to display its sharp upside momentum on Tuesday and closed the day with another handsome gains of 366 points. Nifty opened on an upside gap of 200 points, moved up further in the early part of the session. It later shifted into an intraday range movement with gradual upside in the mid to later part and finally closed near the highs.

Another long bull candle was formed with opening upside gap. This pattern could mean a sharp bullish reversal in the market post the Budget and this action hints at a possibility of faster upward retracement of the recent downward swing. Nifty consumed 6 trading sessions of decline from the all time high of 14753. The last two sessions sharp upside bounce has almost reached the last swing high (on Tuesday made a high of 14731, left by 22 points). A sustainable move above 14753 could open more upside in the near term.

The lost ground of 10 and 20 period EMA around 14150 and upward sloping trend line at 14650 has been regained and Nifty closed above it. This is positive indication and signal more upside for the short term.

The long negative reversal candle as per Nifty weekly timeframe has been overtaken in this subsequent week. As occurred in the previous few occasions over the last 3-4 months, the recent bearish reversal pattern is likely to be negated by the end of this week.

Conclusion: The short term trend of Nifty continues to be positive. The formation of long bull candles and a possibility of faster retracement of downswing is expected to pull the Nifty beyond 14750-14800 levels in the next 1-2 sessions. A sustainable move above this hurdle could open the next upside target of 15475 levels for the next few weeks. Immediate support is placed at 14490.

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