Technical View - Nov 4, 2020 - Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

Nifty witnessed roller coaster ride today, by showing intraday volatility on the backdrop of US election and closed the day higher by 95 points. A long bull candle was formed on Wednesday, that closed near the upper end of the day's range.

After opening on a positive note, Nifty showed volatile up and down swings for the day, which was mainly driven by the sentiments of US Presidential Election. A smart upside recovery has witnessed in the later part and the market closed near the highs.

Nifty is now entering a crucial resistance zone of around 11900-11950 levels and is now facing hurdle at the downsloping minor trend line. Hence, there is a possibility of consolidation or minor profit booking from around 11925-11950 levels in the next session. The expected profit booking is not expected to change the positive status of the short term trend, as we could see an emergence of buying from the lows of 11800 levels.

Nifty on the weekly chart sustained on a support of significant trend line at 11600 levels. Nifty is currently nearing a crucial weekly resistance of high of the last one month around 11950-12025 levels. Hence, there is a possibility of minor weakness from here or from the highs, before showing any sharp upside breakout of the hurdle.

Conclusion: The short term trend of Nifty remains positive. Having moved up sharply in the last two sessions and placed near the crucial resistance zone (11950-12050), there is a possibility of minor profit booking from the highs, before showing any upside breakout of the hurdle. Any dips down to 11800-11750 is going to be a buy on dips opportunity in the market for the next few sessions.

Source : Equity Bulls

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