Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities
After showing sharp weakness in the last three sessions, Nifty witnessed an excellent upside bounce on Monday and closed the day higher by 241 points. After opening with upside gap of 91 points, the market shifted into further upside with range bound movement in the early to mid part of the session. Intraday weakness of mid part has been used as a buy on dips opportunity. The opening upside gap remains unfilled.
A long bull candle was formed on the daily chart, which indicates an upside bounce ion the market after a decline of few sessions. After the formation of lower tops and bottoms on the daily chart, Nifty seems to have formed a higher bottom on Friday at 17795 levels. But this needs to be confirmed with follow-through upmove in the subsequent sessions.
The present upside bounce could be a cheering factor for bulls to make a comeback. The upside could extend towards the crucial overhead resistance of around 18250-18300 levels in the next few sessions. But, a decisive move above this hurdle is likely to bring bulls in to the market. Immediate support is placed at 18000 levels.