Small positive candle with long lower shadow was formed on the weekly chart - HDFC Securities
Daily Technical View on Nifty
Repeated testing of key hurdle..
Observation:
After showing weakness from the overhead resistance of 24350 levels on Thursday, bulls came back into action again on Friday with a sustainable upmove of 250 points amidst a range bound action. Nifty closed near the day's high and the opening upside gap remains unfilled.
A small candle was formed on the daily chart with minor upper and lower shadow and with gap up opening. This is indicating a repeated testing of hurdles around 24400 levels.
Nifty is currently placed at the edge of the key resistance around 24350-24400 levels, which is a lower end of previous sharp opening downside gap of 5th Aug. Hence, further upmove from here could possibly result in complete filling of the said down gap around 24700 levels
Small positive candle with long lower shadow was formed on the weekly chart. Technically, this pattern is indicating a formation of bullish hammer type candle pattern. This is positive indication.
Conclusion: The short term trend of Nifty seems to have reversed up after a reasonable downward correction. Currently placed at the crucial overhead resistance of around 24350-24400 levels.
A decisive upmove above the resistance of 24400 is expected to pull Nifty towards initial upside target of 24700-24800 levels in the coming week. Immediate supports to be watched around 24000-23900 levels.
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