Technical View - Dec 16, 2020 - Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After showing consolidation type movement in the last four sessions, Nifty shifted into an upside breakout of 13600 levels on Wednesday and closed the day higher by 114 points. After opening on a positive note, the market moved into a narrow high low intraday range till the mid part of the session. Further upside has occurred in the mid to later part and Nifty closed near the highs. The opening upside gap remains unfilled.

A small positive candle was formed with long lower shadow. Nifty closed above the last four sessions upper range of 11590 levels. Technically, this pattern indicate an upside breakout of the small range at 13600. The overall market breadth was positive and broad market indices like midcap 100 and small cap 100 of NSE exchange have closed higher by 1.15% and 1.05% respectively. This is positive indication.

After the upside breakout of the resistance of top to top trend line at 12900 levels in the later part of Nov 20, Nifty displayed strength at the new highs and sustained the higher levels. Hence, the trend line upside breakout could be considered as a valid upside breakout and the positive implication is underway since then.

Conclusion: The short term trend of Nifty is positive and one may expect further upmoves in the coming sessions. The next upside levels to be watched around 13900-14000 in the next 1-2 weeks. Immediate support is now placed at 13580.

Source : Equity Bulls

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