Technical View - July 28, 2020 - Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities
After moving into a broader range of 11240-11060 levels in the last four session, Nifty witnessed promising upmove on Tuesday and closed the day higher by 168 points. A long bull candle was formed and that is placed above the upper range of 11240 levels. Hence, a sustainable move above 11250 could open further upside in the market in the short term. As per the theory of recent rectangle pattern of 11240-11060, one may expect upside pattern target of around 11420 for the short term.
The previous opening upside gap of 11245 (opening down gap of 6th March) has been filled completely and Nifty closed above it on Tuesday. The filling of this important gap at 11245 (as Nifty witnessed sharp trended decline in March 2020, after the formation of this gap) could signal more upside in the near term.
After the 11245, the next hurdle would be another opening down gap of 28th Feb, which is placed around 11385-11535 levels. At the same time the long term charts like weekly/monthly timeframe could offer key long term resistance as per change in polarity around 11300-11350.
The short term trend of Nifty is positive. A sustainable move above 11250-11300 is likely to open further upside potential till 11550 in a quick period of time. Any weakness from here could find crucial support around 11230-11200 in the short term.