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Daily Technical View on Nifty

Placed at the edge of upside breakout of hurdle..

Observation:

After witnessing a fine upside bounce from the lows on Tuesday, Nifty continued with decisive follow-through upmove on Wednesday and closed the day higher by 270 points.

After opening with a positive note, the market extended its gains in the mid to later part of the session. Minor consolidation movement was seen at the hurdle of 24500 levels and Nifty finally closed near the highs.

A long bull candle was formed on the daily chart, which is back-to-back for the two sessions. The present upside bounce of last couple of sessions is confirming a formation of crucial bottom reversal pattern around 23800 levels. Hence, a decisive move above the key overhead resistance of 24500 could open more upside ahead.

Present reversal in Nifty from the lows is also signaling a formation of larger degree higher bottom formation as per weekly timeframe chart. This is positive indication and more upside from here could confirm the higher bottom reversal.

Conclusion:

The underlying short-term trend of Nifty continuesto be positive. A sharp upside breakout of immediate resistance of 24500 levels is likely to open the next upside target of 25K mark in a quick period of time. Immediate support is placed at 24350.

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