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Daily Technical View on Nifty

Sharp upside momentum on cards..

Observation: Nifty continued its upside momentum for the fourth consecutive sessions on Wednesday and closed the day with a handsome gains of 213 points.

After opening with a positive note, the market continued to move up in the early to mid part of the session.

Minor intraday weakness has triggered in the mid part, but the market bounced back sharply towards the end and closed at the highs. A new all time high was formed at 21673. A long bull candle was formed on the daily chart, that closed at the all time highs. Technically, this pattern indicates an upside breakout of the previous swing high at 21 593 levels.

Positive chart pattern like higher tops and bottoms is intact as per daily chart and currently, the Nifty is moving towards the new higher top formation. Still, there no confirmation of any higher top reversal at the highs. Having breached above the immediate resistance of 21550-21600 levels, there is a possibility of more upside in the short term. The next upside targets to be watched around 22000-22200 levels in the next one week. Immediate support is placed at 21300 levels.

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