Technical View - Dec 15, 2020 - Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

Nifty continued to show choppy trend for the fourth consecutive sessions on Tuesday and closed the day with a minor positive note. Nifty opened on a negative note, slipped into further intraday weakness after the opening. It later showed a fine intraday upside recovery from the day's low of 13447 in the mid part and erased entire day's loss towards the end and closed the day in minor green. The overall market breadth was neutral and broad market indices like midcap 100 and small cap 100 of NSE have closed with a minor gains of 0.47% and 0.19% respectively.

A small positive candle was formed on the daily chart with long lower shadow. This pattern could be considered as a formation of another doji pattern, which is fourth in a row in the last four sessions. In all the four sessions, we observe a formation of long lower shadow, which signal emergence of buying interest after intraday weakness. this is positive indication and signal chances of further upmove in the short term.

Nifty continues to hold on a immediate support of 10 day EMA in the last 18-20 sessions and this immediate support has led to an upmove from the lows (intraday dips). Still there is no indication of any reversal pattern unfolding at the highs.

Conclusion: The short term trend of Nifty continues to be range bound within a high low band of 13600-13400 levels. A sustainable move above 13600 levels is expected to result in Nifty continuing with next round of sharp upside momentum and inch towards the next upside levels of 13900 in the near term. Any display of lack of strength around 13600 could mean minor profit booking from the highs. Immediate support is now placed at 13450.

Source : Equity Bulls

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