Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities
After showing weakness on Thursday, Nifty witnessed an excellent comeback on Friday and closed the day with decent gains of around 272 points. After opening with a positive note, the market continued with its sustainable upside for the whole session. Minor intraday dips in between have been bought into and Nifty finally closed near the highs.
A long bull candle was formed on the daily chart, which is indicating an upside breakout of the consolidation movement of last few sessions. Friday's upmove seems to have confirmed the lower bottom reversal at 17255-28th Feb, of the larger negative pattern of lower tops and bottoms. Presently, Nifty is in an attempt of staging upside breakout of the initial hurdle at 17600 levels and a move above this area could open the next upside resistance of around 17800 levels in the near term.
Nifty on the weekly chart formed a reasonable bullish candle with minor lower shadow. Formation of such pattern after the sharp weakness of previous week signal chances of upside bounce for the market ahead. Immediate support is placed at 17450 levels.