IGI Logo

Daily Technical View on Nifty

Placed at the upside breakout of gap resistance..

Observation: The choppy movement continued in the market on Friday and Nifty closed the day with minor gains amidst a range bound action. The near term uptrend status remains intact.

A small negative candle was formed on the daily chart at the highs, within a narrow high low range of around 90 points. This is indicating a lackluster type movement at the resistance. Chances of upside breakout is likely.

Nifty is currently placed at the hurdle of opening downside gap of 2nd Aug around 24850-24950 levels. Previous opening down gap of 5 th Aug has been filled completely and Nifty moved higher.

Nifty on the weekly chart formed a reasonable positive candle with minor lower shadow. A significant down gap resistance of previous week as per weekly chart has been filled completely at 24700 levels and the market closed above it in this week.

Conclusion: The underlying short term trend of Nifty is choppy with positive bias. But, the overall strength in the market could eventually pull Nifty to further highs.

A sustainable move above 25K mark could open the upside target for Nifty around 25300 (1.382% Fibonacci extension) in the next 1-2 weeks. Immediate support to be watched at 24500 levels.

Please refer disclaimer at https://www.hdfcsec.com/article/disclaimer-1795

SEBI Registration number is INZ000171337