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Daily Technical View on Nifty

Upside continuation pattern..

Market: Observation

After witnessing minor selling pressure from the all-time high of 24174 levels on Friday, Nifty continued to show upside momentum amidst a range bound action on Monday and closed the day higher by 131 points. After opening with a positive note, the market continued to surge higher with range bound action for better part of the session. Nifty closed the day higher by erasing most of the intraday loss of Friday.

A reasonable positive candle was formed on the daily chart, that has placed beside the small negative candle of previous session. This is positive indication and suggests that the minor negative sentiment created on Friday could be nullified in the short term.

Positive chart pattern like higher tops and bottoms is intact. Having formed a minor higher bottom in the last week, the market is on the uprun to form another higher top of the pattern at the new highs. Still there is no confirmation of any higher top reversal forming at the highs.

Conclusion: The underlying trend of Nifty remains positive. The market is racing towards the next upside target of 24400 levels in the near term. Immediate support is placed at 23980 levels.

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