Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities
Nifty continued its upside momentum with volatility at the new highs and closed the day with decent gains of 89 points. After opening with an upside gap of 53 points, the market continued its upside momentum for better part of the sessions. Intraday dips in between have been bought into and the market closed near the highs. The opening upside gap remains unfilled and the new all time high was registered at 20222 levels.
A small positive candle was formed on the daily chart with minor upper shadow. This pattern indicates gradual upside momentum in Nifty with volatility in the last two sessions. Though, Nifty broken above the hurdle of 20K mark recently, the sharp upside momentum is missing post breakout at the new highs. Nifty on the weekly chart closed with a strong note. We observe a formation of long bull candle on the weekly chart, which is back to back for the second consecutive sessions.
The short term trend of Nifty continues to be positive. There is a possibility of further upside with volatility in the coming sessions. The next upside target to be watched at 20450 levels, which is 38.2% fibonacci extension, taken from March bottom-July top-Aug bottom. Immediate supports to be watched at 20050.