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Daily Technical View on Nifty

Consolidation at the hurdle..

Observation: After showing a sustainable upmove in the last couple of sessions, Nifty shifted into a consolidation on Thursday and closed the day lower by 17 points. After opening with a positive note, the market slipped into minor weakness soon after the opening. Minor upside recovery was seen in the early part, but the market eventually shifted into a narrow range movement for better part of the session

A small negative candle was formed on the daily chart with minor upper and lower shadow. Technically, this pattern indicates a type of spinning top formation after a small rise. But, the candle is placed beside the bullish candle of previous session. The market action signal chances of minor short term weakness in the coming sessions.

Nifty is currently placed at the trend line resistance around 19850 levels and the positive chart pattern like higher tops and bottoms is intact as per daily timeframe chart. Further weakness from here is likely to end up with new higher bottom formation around the support of 19650 levels.

Conclusion: The overall chart pattern indicates buy on dips opportunity for short term. A decisive move above the hurdle of 19850 levels could open next round of sharp upside momentum for the market ahead.

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