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Daily Technical View on Nifty

Observation:

After showing sharp weakness on and small range movement in the previous couple of sessions, Nifty witnessed a decisive upside breakout on Friday and closed the day with hefty gains of 397 points. The opening upside gap has been filled partially and Nifty closed near the highs.

A long bull candle was formed on the daily chart with lower shadow. Technically, this pattern indicates an attempt of an upside breakout of the consolidation movement around 24400 levels.

Nifty has now moved towards hurdle area of previous huge opening downside gap of 5th Aug and the said down gap is expected to be filled soon around 24700 levels.

After the formation of bullish hammer type candle pattern in the last week, Nifty formed a reasonable bull candle this week with long lower shadow. This pattern is indicating a new higher bottom formation and one may expect more upside in the near term.

Conclusion:

The market has bounced back sharply after witnessing high volatility. One may expect further upsides for the Nifty towards 24700 and next 25000 in the next couple of weeks.

Any intra-week decline down to 24200 could be a buy on dips opportunity for the near term. One can place that as a stoplossfor the long positions

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