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Daily Technical View on Nifty

Significant reversal on the upside..

Observation: After showing minor upmove with range bound action in the last couple of sessions, Nifty witnessed an excellent upside momentum on Thursday and closed the day with hefty gains of 445 points.

After opening with a positive note, the market showed a sustainable upmove that continued for the whole sessions. Minor intraday dips in between have been bought into.

A long bull candle was formed on the daily chart, that has surpassed the cluster hurdles like 10/20 day EMA and also the opening downside gap of 19th Dec which has been filled at 24150.

This is positive indication and signal important turnaround for the market on upside. The recent swing low of 23460 of 31st Dec could now be considered as a larger degree higher bottom formation.

Conclusion: The short-term trend of Nifty remains strong on the upside and one may expect Nifty to move towards the next hurdle of 24400 levels. Any dips from here could find support around 23900.

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