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Daily Technical View on Nifty

Upside breakout of crucial hurdle..

Observation: After showing a gradual upmove in the last four sessions, Nifty seems to have strengthened its upside momentum on Thursday and closed the day higher by 101 points.

A long bull candle was formed on the daily chart, which indicates an upside breakout of the range movement and also the resistance of previous lower top at 17863 levels.

Thursday's upside breakout has unfolded few technical developments on the bullish side. The previous bearish pattern like lower tops and bottoms has been negated and the new higher bottom has been confirmed at 17553 (21st April).

The present chart pattern could open up a new bullish sequence of higher tops and bottoms in the near term. Thursday's move has also validated the upside breakout of previous significant down sloping trend line by Nifty sustaining at the support during its dip on 21st April, as per change in polarity

The bearish engulfing pattern on daily (17th April) and as per weekly chart has been negated so far by Nifty surpassing 17863 levels. Bank Nifty continued its gradual upside on Thursday but the pace of the movement is still lacking. Immediate support is placed at 42500 levels.

Conclusion: The underlying trend of Nifty continues to be positive. Having sustained above the important hurdle of 17865 levels, the Nifty is expected to move towards the next upper trajectory of 18200-18300 levels in the near term. Immediate support is at 17800 levels.

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