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Daily Technical View on Nifty

Continuation of range movement..

Market: Observation

The range bound action with positive bias continued in the market on Monday and Nifty closed the day lower by 03 points. After opening with a flat to positive note, the market slipped into minor weakness in the early part of the session. It later moved into a narrow range and showed minor upside recovery towardsthe end.

A small body candle was formed on the daily chart with minor lower shadow. Technically, this market action looks like a doji type candle formation (not a classical one). But, having formed this pattern beside long bull candle of Friday signal sideways range movement in the market.

The minor degree bullish pattern like higher highs and higher lows is visible on the daily chart. Having showed a minor dip at 24168 levels on Friday, the chances of further upmove towards new higher high is likely in the near term.

Conclusion: The short term trend of Nifty continues to be positive. There is a possibility of continuation of this range movement for the next 1 or 2 sessions before witnessing further upmove above 24400 levels. A sustainable move above the key hurdle of 24400 levels could open sharp upmove for the market ahead.

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