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Daily Technical View on Nifty

Showing signs of tiredness at the highs..

Observation: After showing upmove in the last four sessions, Nifty slipped into minor decline amidst volatility on Tuesday and closed the day lower by 23 points. After opening with a positive note, Nifty made an attempt to move up in the early part of the session. It was not able to sustain the intraday gains in the second half and slipped into weakness towards the end. A new all-time high was registered at 22768 levels. A small negative candle was formed on the daily chart at the new all-time highs. Technically, this pattern indicates tiredness for the market at the new highs. Nifty is currently placed near the crucial overhead resistance of ascending resistance line and also important Fibonacci extension around 22750-22800 levels.

Conclusion: Though, Nifty placed at new highs and showing consolidation, still there is no confirmation of any significant top reversal pattern forming at the highs. At the same time, the upper area of 22750-22800 is expected to be a crucial overhead resistance for the short term. Immediate support is at 22500 levels and a decisive break below this support could trigger short term downward correction in the market.

Nifty – Hourly Timeframe chart

Nifty – Daily Timeframe chart

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