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Daily Technical View on Nifty

Uptrend continuation pattern..

Observation: After showing sharp upside bounce on Tuesday, Nifty continued its upmove with range bound action on Wednesday and closed the day higher by 121 points. After opening with a positive note, the market moved up soon after the opening, but later shifted into an intraday range movement for better part of the session. The opening upside gap remains unfilled.

A reasonable bullish candle was formed on the daily chart with minor upper shadow. This market action indicates an upside continuation pattern. Nifty witnessed minor upside breakout of the immediate resistance of around 19700-19750 levels, with gap up opening and the present upside gap could be considered as a bullish breakaway gap. Minor degree positive chart pattern like higher tops and bottoms observed on the daily timeframe chart.

Nifty on the weekly chart placed at the crucial higher bottom reversal at the last week's swing low of 19333 levels. Formation of hammer of last week and upside bounce from the intra-week lows this week as per weekly chart indicates more upside ahead for the market in the near term.

Conclusion: The short term trend of Nifty continues to be positive. A decisive move above 19800 levels is likely to pull Nifty towards the next upside levels of 20,000-20,200 in the near term. Important support is placed at 19650 levels 

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