Technical View - Aug 19, 2020 - Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

Nifty shifted into a consolidation with positive bias on Wednesday, after showing upside momentum in the last couple of sessions. It showed range bound movement for the better part of the session and closed the day with minor gains of 23 points. A small negative candle was formed with in small high low range, which signal intraday sideways range action at the new swing high.

Nifty formed a new swing high of 11460 in the early part of Wednesday and shifted later into a choppy movement. The opening upside gap has been filled completely. The swing high is nearing a key overhead resistance on the weekly chart around 11500 (intermediate trend line resistance as per change in polarity).

After showing upside breakout of immediate resistance of 11373 (swing high of11th Aug) in the previous session, Nifty not showing any sharp profit booking from the highs in the subsequent session is positive indication. One may expect further upside in the market in the short term, but the narrow range or choppy movement is expected to continue in the coming sessions.

The short trem trend of Nifty continues to be positive. The range movement with positive bias is likely to continue for the next sessions. There is a possibility of Nifty reaching upper 11550-11600 levels in the next few sessions, before showing another round of profit booking from the highs. Immediate support is placed at 11375-11350 levels.

Source : Equity Bulls

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