IGI Logo

Daily Technical View on Nifty

Buy on dips opportunity..

Observation:

After showing consistent upmove in the last four sessions, Nifty slipped into minor profit booking from the new highs on Friday and closed the day lower by 33 points. All time high was registered at 24174. A small negative candle was formed on the daily chart on Friday with small upper shadow. Technically, this formation is indicates consolidation or chances of minor dip in the market from the highs. Further weakness from here is expected to be a buying opportunity at the lower supports. However, a sustainable move above 24200 levels is likely to resume decisive upside momentum for the near term. Nifty on the weekly chart formed a long bull candle after a consolidation of last two weeks. This upside breakout is likely to have more positive impact in coming week.

Conclusion: The underlying trend of Nifty from smaller to larger timeframe remains up. Though market placed at the highs, still there is no confirmation of any significant reversal pattern building at the new highs. Having placed at the minor hurdle, there is a possibility consolidation or minor dips in the intramonth and that is expected to be a buying opportunity. Immediate support is placed at 23650 levels. The upside targets to be watched around 24380 (1.618% Fibonacci Extension) and 24960 (1.786% Fibonacci Extension) in the next 1-2 months.

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

SEBI Registration number is INZ000171337