Technical View - Nov 18, 2020 Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities
(Time Zone: Arizona, USA)
Nifty continued its upmove on Wednesday amidst a range movement and closed the day decently higher by 64 points. Nifty opened on a slightly weak note, shifted into an intraday narrow range for the better part of the session. It witnessed smart upside recovery from the intraday lows in the afternoon and closed near the high. A small positive candle was formed with minor lower shadow. Technically, this pattern could indicate a range movement in the market with positive bias. Nifty made a new all time high of 12948.
Nifty is in a sharp uptrended and showing positive sequence like higher highs and lows on the daily chart. The sharp weakness or any reversal pattern is not unfolding at the highs and the consolidation or range bound movement is turning out to be a minor higher low of the positive sequence. This is positive indication and one may expect further upside in the near term.
The strong overhead resistance at 12850 (ascending long term trend line, connecting rising tops, as per weekly/monthly timeframe chart) has started to surpass gradually on the upside and the market has failed to show any sort of correction/profit booking at the highs. Further upmove from here (above 13000/13100) could open up the next higher targets for the Nifty.
Conclusion: The short term trend of Nifty continues to be positive. A sustainable move above 13K levels in the next few sessions could open the next upside targets of around 13500-13600 levels in the near term. Immediate support is placed at 12800.