Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities on today's market performance.
Nifty continued its upside momentum for the seventh consecutive sessions on Monday and closed the day with hefty gains of 176 points by zooming into new all time highs. After opening with an upside gap of 70 points, Nifty continued its upward journey gradually for better part of the session. The upside momentum got picked up towards the end and Nifty closed at the highs.
A long bull candle was formed on the daily chart with gap up opening. The overall chart pattern indicates an attempt of upside breakout of the hurdle at 20K mark and the Nifty has registered new all time highs at 20,008 levels. On the weekly chart we observe a faster retracement on the upside (upside retracement within three weeks against six weeks of previous declines). This is positive indication.
The short term trend of Nifty continues to be positive. A sustainable move above 20K mark is expected to pull Nifty towards the next overhead resistance of around 20450 levels (38.2% Fibonacci extension). Immediate support is placed at 19850 levels.