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Daily Technical View on Nifty

Comeback of bulls after a small decline.

Observation: After showing weakness in the last couple of sessions, Nifty shifted into a sustainable upside bounce on Thursday and closed the day with decent gains of 141 points. After opening with an upside gap of 88 points (body gap, not a western gap), the market continued to move up amidst a range movement for better part of the session. Intraday buying has emerged again towards the end and Nifty closed near the highs. The opening upside gap remains unfilled.

A small positive candle was formed on the daily chart, which is placed within a high low range of Wednesday's bear candle. Technically, this could be considered as a bullish inside day type candle pattern. Hence, more upside in the next session is likely to confirm this bullish pattern

The positive chart pattern like higher tops and bottoms is intact on the daily chart and the swing low of last session is expected to be a higher bottom of the sequence.

Conclusion: The short-term trend of Nifty seems to have reversed on the upside after two sessions of minor weakness. Nifty sustaining above 21550-21600 levels could possibly open the next upside towards 21850-21900 and higher in the near term. Immediate support is at 21550.

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