Technical View - April 29, 2021 - Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities
(Time Zone: UTC)
After showing a sharp upside momentum in the last couple of sessions, Nifty struggled to sustain highs after the opening gains on Thursday and closed the day with minor gains of 30 points. Nifty opened on an upside gap of 115 points, Nifty made an attempt to move up further soon after the opening. Intraday weakness got triggered from the day's high of 15044 levels in the morning and the market slipped into intraday weakness from there on. Minor upside recovery attempt was not successful and the Nifty closed near the lows.
Small body of negative candle was formed with upper and lower shadow. Technically, this pattern indicate a formation of high wave type candle pattern and this signal volatility in the market and confused state of mind among participants near the resistance. Such high wave type formations after a reasonable rise or near the hurdles some time signal profit booking/downward correction from the higher levels.
The overall chart pattern of Nifty remains strong on the upside and we expect any decline from the hurdle could be a buying opportunity. The expected weakness is expected to form a new higher bottom of this rising swing. The crucial overhead resistance of 14900-15000 levels (previous swing highs and resistance as per change in polarity) could eventually be broken decisively on the upside after the consolidation or repeated attempt.
Conclusion: The short term uptrend status of Nifty remains intact and the present minor negative setup at the resistance is unlikely to change the bullish sentiment in the market. Any decline from here down to 14800-14700 is going to be a buy on dips opportunity (higher bottom formation) and the market could retest the upper 15K mark in the near term.