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Daily Technical View on Nifty

Display of lack of strength around the hurdle..

Observation: After showing a sustainable upmove in the last three sessions, Nifty shifted into a consolidation on Wednesday amidst volatility and closed the day higher by 10 points.

After opening with a positive note, the market moved up further in the early part of the session. However, it was unable to surpass the hurdle of 24600 levels and showed minor weakness from the highs.

A small red candle was formed on the daily chart with minor upper and lower shadow. Technically, this market action indicates a formation of high wave type candle pattern at the highs and this reflects ongoing volatility in the market.

Normally, such high wave type candle formation after a reasonable upmove or at the hurdle some time results in impending reversal of trend after the confirmation.

Having placed near the crucial resistance, the Nifty was unable to gather strength to witness a decisive upside breakout.

Bullish chart pattern like higher highs and lows is intact on the daily chart and any dips from here could be a buying opportunity.

Conclusion:

The near-term trend of Nifty continues to be positive.

Having not able to surpass the resistance zone sharply above 24500 levels, there is a possibility of some more consolidation or minor dip in the next 1-2 sessions before showing next round of upmove. Immediate support is at 24300 levels.

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