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Daily Technical View on Nifty

Placed at the edge of upside breakout of 19600..

Observation: After showing range bound action with weak bias on Thursday, Nifty shifted into a volatility with intraday up and down swings on Friday and closed the day higher by 30 points. A special Muhurat Trading session of Sunday has resulted in Nifty showing a sustainable upmove and closed with the gains of 100 points.

A small positive candle was formed on Friday on the daily chart with minor upper shadow. Another small negative candle was formed with gap up opening on the day of special Muhurat trading session on 12th Nov. Both of these patterns are indicating an attempt of upside breakout of hurdle and narrow range movement around 19500-19600 levels.

Nifty as per weekly chart formed a reasonable positive candle, that placed at the edge of upside breakout of around 19500-19600 levels as per the concept of change in polarity. A decisive upside breakout of this hurdle could open sharp upside momentum ahead. Any weakness from here could find support around the lows of 19250-19300 levels.

Conclusion: The short term trend of Nifty continues to be up. Important resistances have started to surpass higher one after another.

Nifty is currently placed at the crucial overhead resistance of 19500-19600 levels (as per the concept of change in polarity). A decisive upmove above this resistance is likely to open the next upside target of around 19850-20,000 mark in the November month. Any decline from here is likely to find support around 19250-19300 levels, which is expected to be a buy on dips opportunity for this month. One may look to continue with/create fresh longs aggressively on upside breakouts. Stoplossto be kept at 19250.

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