Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities
After showing consistent upmove over the last eight sessions, Nifty witnessed sharp buying after intraday weakness on Thursday and closed the day higher by 15 points. After opening with a negative note, the market slipped into further weakness in the early to mid part of the session. A sharp intraday buying has emerged from the day's low of 17730 levels and the market continued its gains towards the end and closed at the highs.
A small positive candle was formed on the daily chart with long lower shadow. Technically, this pattern indicates a buy on intraday dips opportunity on Thursday. Nifty is currently making an attempt to stage upside breakout of the crucial overhead resistance at 17800 levels (previous lower top of 6th March). A decisive move above this hurdle is likely to negate the bearish chart pattern of lower tops and bottoms of the last few months and that could open positive pattern like higher tops and bottoms.
Nifty on the weekly chart has witnessed an upside breakout of the down sloping trend line at 17600 levels this week and closed higher. The Bank Nifty has outperformed the benchmark Nifty this week and witnessed upside breakout of the down trend line hurdle.
The overall chart pattern of Nifty continues to be positive. The next upside targets to be watched around 18200 levels in the coming weeks. Immediate support is at 17700 levels.