Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities
After showing consolidation with high volatility in the last couple of sessions, Nifty witnessed a sustainable upside bounce on Tuesday and closed the day with decent gains of around 288 points. After opening with a positive note, the market continued its upside momentum for the whole session. Intraday minor dips in between have been bought into. The opening upside gap remains unfilled.
A long bull candle was formed on the daily chart and the Nifty seems to have confirmed a short term bottom reversal at the swing low of 15183 levels. The formation couple of doji and high wave pattern at the lows of the last two sessions have finally resulted in a decisive reversal on Tuesday. This is positive indication.
Nifty is currently facing a crucial overhead resistance around 15700-15800 levels (previous swing lows, as per the concept of change in polarity). Considering the significance of this value area (evident of long bear candle formation during recent downside breakout), there is a possibility of weakness emerging from the hurdle. However, any consolidation or minor weakness in the next few sessions at the resistance could hint possibility of sharp upside breakout of 15800 levels.