Technical View - April 28, 2021 - Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities
(Time Zone: UTC)
After showing a sign of strength with upside momentum on Tuesday, Nifty demonstrated another sharp upmove on Wednesday and closed the day higher by 211 points. After opening with upside gap of 57 points, Nifty shifted into a sustained upmove, that continued for the entire session. Intraday consolidation or minor dips in between have been used as buy on dips opportunity for the day. The opening upside gap remains unfilled.
A long bull candle was formed, that closed at the edge of crucial overhead resistance at 14900 levels (resistance as per change in polarity and previous swing highs). Though, Nifty placed at the key hurdle, there was no sign of profit booking from near the resistance on Wednesday. This is a positive indication and signal more upside in the short term.
After the false downside breakout of the lower range of 14200 levels on 22nd April, Nifty displayed strength on the upside and has almost reached the upper trajectory of the range pattern at 14900 levels. Hence, a sustainable move above this hurdle could open the next upside target of around 15200-15300 levels in the near term.
Nifty has bounced back as per weekly timeframe chart and formed a long bull candle so far. After the formation of doji candles in the previous three weeks during decline, one may now expect a formation of long bull candle as per weekly timeframe chart, by week's close.
Conclusion: The short term trend of Nifty continues to be positive. After the display of strength to move above the hurdle, one may expect present upside resistance (14900) to be broken decisively on the upside in the short term. Any intraday consolidation or minor weakness from near the hurdle could be a buy on dips opportunity. Immediate support is placed at 14750.