Technical View - Dec 14, 2020 - Mr. Nagaraj Shetti, Technical & Derivatives Analyst, HDFC Securities

The consolidation movement continued in Nifty on Monday and the market closed on a modest gains of 44 points. After opening on a positive note, Nifty slipped into a gradual intraday weakness from the highs in the morning session. The range bound movement continued for the second half and minor intraday dips have witnessed an emergence of buying in the mid to later part of the session. The opening upside gap has been filled completely at 13515.

A small body of negative candle was formed on Monday with lower shadow. The Nifty has registered a new high of 13597 on Monday, before showing intraday consolidation movement. Technically, this market action could be considered as a part of a range movement in the market with positive bias.

On the daily chart we observe continuous higher highs over the last many sessions and we also see formation of large number of lower shadows in the candles. This pattern could signal a strength of upside momentum in the market with emergence of buying in small dips. This is positive indication and one may expect further upside in the short term.

Conclusion: The short term trend of Nifty continues to be range bound with positive bias. The near term upside target to be watched at 13900 and there is a possibility of one day dip in the market, before reaching upside trajectory. Immediate support is placed at 13450.

Source : Equity Bulls

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