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Daily Technical View on Nifty

Continuation of upside momentum..

Observation:

The upside momentum continued in the market for the second consecutive sessions on Monday and the Nifty closed the day with a decent gain of 84 points. After opening with a positive note, the market continued to move up gradually in the early to mid part of the session. Consolidation has happened at the new highs in the mid to later part of the session and Nifty finally closed the day near the highs. New alltime high was registered at 24635. A small candle was formed on the daily chart with identical open and close. Technically, this pattern indicates a formation of doji type candle pattern. Normally such doji formations after a reasonable upmove and at hurdles considered as an impending reversal signal from the highs post confirmation. But, having formed this pattern amidst a range movement, the significant negative anticipation could be less.

Conclusion: The near-term trend of Nifty remains positive. Having sustained above the hurdle of 24400 levels (1.618% Fibonacci extension), there is a higher possibility of further gradual upmove in Nifty towards 24950 levels in the next one week. Immediate support is at 24450.

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