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Daily Technical View on Nifty

Minor upside bounce..

Observation: After showing sharp weakness on Tuesday, Nifty shifted into a sustainable upside bounce amidst volatility on Wednesday and closed the day higher by 140 points. After opening with a positive note, the market showed high volatility in the earlymid part of the session. Intraday buying has emerged from the day's low of 16960 levels and the market continued its upside momentumtill the end.

A reasonable positive candle was formed on the daily chart, that has placed beside the long bear candle of Tuesday. Technically, this pattern indicates a comeback of bulls from the support of 200day EMA around 16900 levels. This is positive indication and a sustainable move above the hurdle of 17250 levels could be considered as a confirmation of upside reversal.

After the formation of minor degree lower tops and bottoms on the daily chart during its recent weakness, the market is now sustaining above 16950 levels in the last couple of sessions. Further upside from here could also confirm a formation of higher bottom at 16950 levels.

Conclusion: The short term trend of Nifty is range bound with positive bias. The market is now making an attempt to form a short term higher bottom formation around 16950 levels. A sustainable move above the hurdle of 17260 levels could confirm more upside for the near term. Immediate support is placed at 16950 levels.

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