Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities
The upside momentum continued in the market on Thursday and Nifty closed the day with handsome gains of 146 points. After opening with a flat note, the market slipped into weakness in the early part of the session. A sustainable buying has emerged from the intraday support of 19750 levels and the market displayed strength on upside in the mid to later part of the session. New all time high was registered at 19991 levels.
A long bull candle was formed on the daily chart with minor lower shadow. Technically, this market action indicates sharp upside momentum for the market. Though, Nifty placed at the highs, there is no sign of any tiredness or reversal pattern building at the new highs. Hence, one may expect further upside in the short term.
Smaller degree higher highs and lows is in force in Nifty as per daily timeframe chart and presently, Nifty is in line with new higher top formation. But, still there is no confirmation of any higher top reversal pattern at the highs.
The near term uptrend remains intact and the Nifty is at the edge of reaching historical 20K mark. The present upside momentum is likely to continue for the short term and the next crucial upside resistance to be watched around 20450, which is 100% Fibonacci projection-taken from important bottom-top-bottom as per weekly chart. Immediate support is at 19850 levels.
