Technical View - April 15, 2021 - Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities
(Time Zone: UTC)
After showing a sustainable upside bounce on Tuesday, Nifty witnessed another decent upmove amidst a volatility on Thursday and closed the day higher by 76 points. Nifty opened on a positive note, made an attempt to move up in the early part of the session. Intraday weakness got triggered from the high of 14566 and Nifty witnessed sharp intraday weakness in the early-mid part of the session. A fine upside recovery has emerged from the lows and the market moved up in the afternoon to later part of the session and closed near the highs.
A small positive candle was formed with long lower shadow. Technically, this pattern indicate a buy on dips opportunity in the market and this is positive indication. Having sustained near the lower range/key support around 14300-14250 levels for the last two sessions, the odds of further upside bounce near to the upper range of 14800-14900 likely in the next few sessions. The opening upside gap of 12th April could offer strong resistance for the market around 14800 levels.
Nifty on the weekly chart has recovered from the weekly 20 period EMA at 14220 levels. Another crucial 10 period EMA is placed at the highs of 14650 levels. The long term charts like monthly has formed a indecisive type pattern like a doji in the last month. Weekly chart is showing consistent lower highs (15431, 15336 and 14984) with horizontal support of 14250 levels over the last two months. There is a higher possibility of Nifty forming another lower top around 14800-14850 levels this time, before showing a decisive weakness from the highs.
Conclusion: The short term trend of Nifty continues to be positive with volatility. There is a possibility of further upside in the next few sessions towards 14800 levels before showing decline again from the highs. The overall long term chart pattern indicate that this is going to be a last rise before the sharp weakness from the highs. Immediate support is at 14520.