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Daily Technical View on Nifty

Observation: After shifting into a narrow range movement in the last couple of sessions, Nifty showed high volatility of up and down swings on Wednesday and closed the day lower by 18 points.

After opening with a downside gap of 68 points, the market slipped into further weakness soon after the opening and later started to recover from the lows in the early part of the session. Upside recovery has halted at the hurdle of 22525 and the market erased some of intraday gains towards the end.

A small positive candle was formed on the daily chart with gap down opening and with upper shadow. Technically this pattern indicates broader range movement in the market near all-time highs.

The smaller degree positive pattern like higher tops and bottoms is intact as per daily chart and present weakness could be in line with new higher bottom of the sequence. Hence, any weakness from here could be a buy on dips opportunity.

Conclusion: The near-term uptrend of Nifty remains intact and a decisive move above 22550 is likely to pull Nifty towards the next crucial hurdle of 22800 levels in a quick period of time. Immediate support is at 22300 levels.

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