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Daily Technical View on Nifty

No signs of any reversal at the highs..

Observation: After showing weakness from the highs on Tuesday, Nifty continued to move up range bound action on Wednesday and closed the day higher by 111 points. After opening with a positive note, the market shifted into a narrow range for better part of the session. New all-time high was registered at 22775 and Nifty closed near the highs. A small positive candle was formed on the daily chart with minor upper and lower shadow. Technically, this pattern indicates a formation of high wave type candle pattern. But, having formed this pattern amidst sideways range, the predictive value of this pattern could be less.

Conclusion: Nifty is currently placed at the hurdle of around 22800 levels (ascending resistance trend line and 1.618% Fibonacci extension). Though, Nifty placed near the hurdle, still there is no sign of any reversal forming at the highs. Immediate support is at 22615 levels. A decisive move above 22800 levels is expected to open further upside momentum for the market ahead.

Nifty – Hourly Timeframe chart

Nifty – Daily Timeframe chart

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