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Daily Technical View on Nifty

High volatility on the budget day..

Observation:

After showing downward correction from the new highs recently, Nifty witnessed high volatility on Tuesday (Union Budget 2024)and closed the day lower by 30 points. After opening with a positive note, the market slipped into minor weakness till 11 am on Tuesday. During presentation of Union Budget in the Parliament in the afternoon Nifty slipped into sharp weakness and recovered quickly from the day's low. Finally closed the day off the lows.

A small negative candle was formed on the daily chart with long lower shadow. Technically, this pattern indicates a formation of bullish hammer type candle pattern and this signals an attempt of comeback of bulls from the lower levels. A sustainable upmove from here could confirm short term reversal pattern on the upside.

The market continued to sustain above daily 10- and 20-day EMA. Nifty has been sustaining above these moving averages since past 5-6 weeks and have formed few minor bottom reversals around these supports in the past.

Conclusion:

The short term trend of Nifty remains negative with high volatility. Emergence of sharp buying and the formation of positive candle pattern on Tuesday is signaling occurrence of bullish reversal pattern in the coming sessions. A sustainable move above 24650-24700 could open the next upside towards 24850-24900 levels in the near term. Crucial lower support is at 24100 levels.

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