Technical View - April 8, 2021 - Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After witnessing a sharp weakness on Monday, Nifty shifted into a consolidation with volatility on Tuesday and closed the day higher by 45 points. After opening on an upside gap of 100 points (body gap, not a western gap), Nifty started with intraday weakness from the highs in the early part of the session. Upside recovery has witnessed from the lows and Nifty closed the day on an upside recovery note.

A small negative candle was formed with long lower shadow, which indicate a consolidation movement in the market with lower levels buying. The formation of lower shadow in the last two daily candles signal an emergence of buying interest from the lows.

The crucial upper resistance of 14880 (resistance as per change in polarity) remains intact and the weakness which started from near the hurdle seems to be halting now. Hence, one may expect Nifty to move up and retest the crucial upper resistance again in the coming sessions.

Nifty on the weekly chart is placed at the weekly 10 period EMA at 14640 and is showing upside recovery from the said support. We observe a broader high low range movement in the Nifty over the last 5-6 weeks around 15300-14300 levels. Hence, the market is within a range and immediate resistance is placed at 14900.

Conclusion: The short term trend of Nifty remains range bound. The market is witnessing an alternative movement of up and down over the last four sessions. As per the present set up, one may expect Nifty to retest the crucial overhead resistance around 14880 levels in the short term, before showing another round of weakness from the highs. A sustainable move above 14900 could open a sharp upside for the market. Immediate support is placed at 14600.

Source : Equity Bulls

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