Technical View - March 3, 2021 - Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities
(Time Zone: Arizona, USA)
The sharp up trended movement continued in the market for the third consecutive sessions on Wednesday and Nifty closed the day with hefty gains of around 326 points. After opening on an upside gap of 144 points, Nifty shifted into a continuous upmove for the whole session. There was no meaningful intraday dips in between for the day and the opening upside gap remains unfilled.
A long bull candle was formed on the daily chart and the Nifty has overtaken the key resistance area of previous opening down/up gap at 15065 levels and the recent swing high of 15176-25th Feb. This is positive indication and the recent negative pattern seems to have nullified and one may expect further upside in the short term.
The formation of new lower top of 25th Feb has been surpassed on the upside and the market could start showing positive sequential movement like higher highs and lows in the short term. Hence, any consolidation or intraday declines from here could be a buy on dips opportunity.
The medium term uptrend in Nifty as per weekly timeframe chart is intact and we observe a formation of larger degree of higher tops and bottoms over the last many months. The 10 period weekly EMA has been respected on dips so far. According to this action, one may expect further upside towards the new highs soon.
Conclusion: The short term trend of Nifty continues to be up. The negation of recent bearish patterns could indicate more upside in the short term. The next upside levels to be watched around 15430 in the next 2-3 sessions. Immediate support is placed at 15160.