Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities
After showing a sharp upside breakout of the hurdle at 19900 levels on Wednesday, the Nifty shifted into a breather pattern and closed the day modestly higher by 37 points. After opening with a positive note, Nifty slipped into minor weakness in the early part of the session. A sustainable upside recovery has emerged in the early-mid part of the session and the market closed near the highs.
A small positive candle was formed on the daily chart with long lower shadow. Technically, this pattern indicates buy on dips opportunity. Nifty is currently, in an attempt of moving above the immediate resistance of 20115 levels, which is a opening downside gap of Sept month. This is positive indication, and one may expect further upside in the near term.
The short-term trend of Nifty continues to be positive. Having moved above the crucial hurdles recently, the market is expected to zoom into new all-time highs in the near term. However, exit polls of Thursday evening and recently concluded assembly election results of weekend is expected to show fresh direction for the markets ahead. Immediate support is placed at 19900-19950 levels.