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Daily Technical View on Nifty

High volatility at new highs..

Observation: After showing a range bound action in the last three sessions, Nifty showed high volatility of up and down swings near new all-time highs today and finally closed the day higher by 80 points.

After opening with an upside gap of 158 points, the market showed intraday weakness in the early part of the session. There was a sharp intraday upside bounce from the lows in the mid to later part of the session and Nifty closed the day off the lows. New all-time high was registered at 22619 levels.

A small negative candle was formed on the daily chart with long lower shadow. This pattern indicates presence of strong resistance at the new all-time highs and the sharp buying is emerging from the lower levels. Still the market is not able to generate enough strength for a decisive upside breakout of 22550- 22600 levels.

Conclusion: The near-term uptrend of Nifty remains intact and we observe smaller degree positive pattern like higher tops and bottoms as per daily timeframe chart.

A decisive move above 22550-22600 levels could open the next upside towards 22800 levels. Immediate support is at 22300 levels.

Nifty – Hourly Timeframe chart

Nifty – Daily Timeframe chart

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