Technical View - Dec 1, 2020 - Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After showing consolidation type movement on Friday, Nifty shifted into a decent upmove on Monday and closed the day with handsome gains of around 140 points. After opening on a positive note, Nifty slipped into minor decline soon after the opening. it later shifted into a sustainable upmove from the intraday lows and finally closed near the highs. Minor intraday corrections have created minor buy on dips opportunity for the day.

A small positive candle was formed with long lower shadow. Technically, this pattern could indicate a buy on dips opportunity in the market. Recently, we observe formation of few lower shadows in the daily candles, which signal that bulls are not willing to give up, despite new all time highs and overhead resistances.

After the formation of bearish engulfing pattern of 25th Nov at 13145, Nifty failed to show any bearish implication three sessions after this formation. This market action opens higher possibility of further upmove above 13145 levels in the coming session by negating the bearish engulfing pattern. On such event, one may expect more upside in the near term.

Nifty on the weekly chart formed a doji type candle pattern at the new highs in last week. Presently, the market is moving up in the intra-week and is expected to challenge the high of doji pattern at 13145 in the coming session. A sustainable move above doji (weekly chart)/bearish engulfing (daily chart) at 13145 could mean more upside for the market in the near term.

Conclusion: The short term trend of Nifty continues to be positive. Further upside above 13145 is expected to negate couple of bearish patterns, as per daily and weekly timeframe chart and that is expected to could open the next upside levels of 13500 in the near term. Immediate support is placed at 12960.

Source : Equity Bulls

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