Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
After witnessing an upside bounce on Tuesday, Nifty showed follow-through upmove on Wednesday and closed the day with decent gains of around 112 points. After opening with a positive note, the market continued with upside momentum for better part of the session. Intraday dips have been bought into and Nifty closed near the highs.
A long bull candle was formed on the daily chart, which indicates an attempt of upside breakout of the triangle pattern at 18050 levels. The market was moving in a larger consolidation band in the last three weeks and is currently in an attempt of upside breakout of the range movement. This is positive indication and one may expect further upside ahead.
In the last few sessions, Nifty displayed strength on the upside and surpassed couple of resistances (18020 and 18100 levels) and such market action was not visible in the past. Presently, the Nifty is likely to encounter next hurdle at 18265 levels and the upmove above this resistance could strengthen upside momentum for the market ahead.
Conclusion: The short-term trend of Nifty is positive and the market is now in an attempt of decisive upside breakout of the hurdles. One may expect Nifty to surpass the next overhead resistance of 18265 levels in the coming sessions. Immediate support is placed at 18020.