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Daily Technical View on Nifty

Uptrend continuation pattern..

Observation: After showing a narrow range movement on Friday, Nifty shifted into a sustainable upmove on Monday and closed the day higher by 152 points. After opening with an upside gap of 65 points, the market continued to move up for better part of the sessions. Intraday dips in between have been bought into and the market closed near the highs. New alltime high was registered at 22697 levels. A reasonable positive candle was formed on the daily chart with gap up opening. Technically, this pattern indicates positive bias for the market ahead. Though, Nifty placed at the new highs, still there is no signal of any reversal pattern building up at the highs. Positive chart pattern like higher tops and bottoms is intact as per daily chart and present upmove is in line with the new higher top formation of the pattern. Still there is no confirmation of any higher top reversal completing at the highs.

Conclusion: The short-term uptrend of Nifty remains intact and the next upside levels to be watched around 22800 levels (1.618% Fibonacci projection). Immediate support is at 22520 levels.

Nifty – Hourly Timeframe chart

Nifty – Daily Timeframe chart

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