Technical View - Feb 15, 2021 - Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After showing a range bound movement in the last four sessions, Nifty witnessed sharp upmove on Monday and closed the day higher by 151 points. After opening on an upside gap of around 107 points, Nifty shifted into a gradual upmove amidst a range movement for the whole session. Minor intraday dips in between was used as buy on dips opportunity. Today's opening upside gap remains unfilled.

A small positive candle was formed with gap up opening and with minor lower shadow. Technically, this pattern could indicate an upside breakout of the upper range of around 15255 levels. This pattern has negated a minor bearish implication created after a doji or high wave type candle pattern of Friday. This is positive indication.

After the sharp upmove of around 1600 points post the Union Budget-21, the Nifty has failed to show any reasonable downside correction over the last two weeks. The last minor swing low 14977 of 10th Feb could be considered as a new higher bottom of the positive sequence, like higher highs and higher lows. From, here, one may expect further upside in the market for the short term towards next higher high.

Nifty is now nearing an important overhead resistance around 15475, which is 1.618% Fibonacci extension (taken from a Jan 20 top and March 20 bottom), there is a possibility of minor profit booking or emergence of volatility at the highs.

Conclusion: The short term trend of Nifty continues to be positive. Today's upside breakout attempt of the range of 15255 could open more upside in the short term. The next upside levels to be watched around 15500 in the next few sessions. Immediate support is placed at 15200.

Source : Equity Bulls

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