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Daily Technical View on Nifty

Observation: Upside momentum continued with range bound action in the market on Tuesday and the market closed the day with 79 points amidst choppy movement. After opening with a positive note, Nifty shifted into a narrow range movement for better part of the session. Minor intraday weakness has emerged in the later part of the session, but the market was managed to close off the days low towards the end. The opening upside gap has been filled partially.

A small negative candle was formed on the daily chart with gap up opening and with small lower shadow. This market action indicates a gradual upside momentum in the market amidst a range movement.

Smaller degree positive chart pattern like higher tops and higher bottoms is intact as per daily timeframe chart. Having formed a new higher bottom at 19635 on 13th Oct, there is a possibility of Nifty moving above 19850 levels in coming session to form another higher top of the sequence.

Conclusion: The short term trend of Nifty continues to be positive with range bound action. Nifty is expected to face patchy road ahead on the upside, as it could encounter multiple resistances like 19850 (previous swing high), 19950 (up trend line hurdle) and 20115 (previous opening down gap) in the near term. Immediate support is placed around 19700 levels. 

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