Technical View - Nov 3, 2020 - Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After the formation of minor positive candle pattern in the last couple of sessions, Nifty witnessed a sharp upmove on Tuesday and closed the day on a promising gains of around 144 points. A long bull candle was formed with gap up opening and the intraday upside gap remains unfilled. This pattern could be a signal of short term bottom reversal in the market and the unfilled upside gap could be considered as a intraday bullish breakaway gap.

After opening on a positive note on Tuesday, Nifty continued its upmove in the early part of the session, before shifting in to a narrow high low range for the better part of the session. Minor intraday dips of mid part was used for buying and Nifty finally closed at the upper range of 11830 levels.

The overall market breadth has turned up slightly with broad market indices like NSE midcap100 closing higher by 0.70% and small cap 100 closed on a flat note. This could be a minor cause of worry for the market to sustain the highs.

Initial resistance of 11750 levels has been broken on the upside and and Nifty sustained above it. The next important resistance is placed at 11930-11950 levels, which is an upper area of the recent consolidation.

Conclusion: The short term trend of Nifty has turned up, after forming a reversal type pattern at 11550 levels. One may expect further upside in the coming session and Nifty could test the next upside resistance of 11900-11950 in the next couple of sessions. Immediate support is placed at 11740 levels.

Source : Equity Bulls

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