Technical View - July 13, 2021 - Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities
(Time Zone: UTC)
After showing higher level intraday weakness on Monday, Nifty witnessed sustainable upside bounce on Tuesday and closed the day higher by 119 points. After opening on an upside gap of 102 points, Nifty shifted into a range move for the better part of the session. Intraday dip of mid part was absorbed and gradual upside continued till the end of the session. Nifty closed near the highs and the opening upside gap remains partially filled.
A small body of positive candle was formed on Tuesday with long lower shadow and with unfilled opening upside gap. The negative implication of sell on intraday rise of Monday was nullified and Nifty closed higher on Tuesday. The crucial intraday resistance of 15800 has been broken on the upside and the Nifty closed just above it, as per day's close. This is positive indication and signal more upside in the short term.
Nifty is expected to revisit key overhead resistance of 15900-15915 levels of larger high low range in the next 1-2 sessions. In the last one month, the market has tested this hurdle for the three occasions and slipped into minor weakness from the highs in all the occasions. Technically, such repeated hitting of the hurdle and minor decline from the highs could eventually result in a sharp upside breakout of the resistance.
Conclusion: The short term trend of Nifty continues to be positive with range bound action. One may expect further upside towards 15900-15915 levels in the short term before showing next round of consolidation. The emergence of strength at the hurdle could only open a sharp upside breakout of the resistance in the short term. Immediate support is placed at 15710 levels.