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Daily Technical View on Nifty

Display of sharp upside momentum..

Observation:

After showing sustainable upside bounce on Friday, the Nifty witnessed an excellent upmove on Monday and closed the day with hefty gains of around 382 points. After opening with an upside gap of 139 points, the market moved up in the early part of the session. It later shifted into an intraday consolidation in the mid part and moved up again towards the end. The opening upside gap remains unfilled.

A long bull candle was formed on the daily chart with gap up opening. Technically, this pattern indicate sharp upside breakout in the market. Nifty is currently nearing an important hurdle of down sloping trend line around 18200 levels (down sloping trend line connected to lower swing highs, as per daily chart). There is a possibility of consolidation movement or minor downward correction around 18200 levels before showing further upside.

The strength of recent upmove indicate that the market is unlikely to show any sharp trend reversal around the hurdle of 18200 levels and could eventually broken above the resistance over the period of time. However, a decisive upside breakout of the said hurdle is likely to open door towards the new all time high above 18600 levels.

Nifty – Hourly Timeframe chart

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