Technical View - March 30, 2021 - Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After showing a sustainable upmove on Friday, Nifty continued its sharp upside momentum on Tuesday and closed the day with hefty gains of around 337 points. Nifty opened on an upside gap of around 121 points, made an attempt to move up for the better part of the session. Intraday dips in between was used as a buying opportunity.

A long bull candle was formed on the daily chart with gap up opening and the market is now placed at the hurdle of previous lower top around 14878- 23rd March. This is positive indication and the overall chart pattern signal possible upside breakout of this hurdle in the short term.

Nifty on the weekly chart has regained above its important lower support of 10 period EMA around 14625. The formation of reasonably smaller negative candles on the downside and formation of long lower shadows in the last two weekly candles have proved to be a buy on dips opportunity in the market.

Previously, Nifty bouncing up from its 10w-EMA in past has resulted in a significant upside bounce from the lows. Having showed such a pattern in last week, the odds of sharp upside bounce was due. Hence, more upside could be in store.

Conclusion: The short term trend of Nifty is positive and the market is expected to sustain above the crucial overhead resistance of 14900 by next session. A sustainable move above this hurdle is expected to pull Nifty up to 15200 in the short term. Any failure to do so could bring minor downward correction in the near term. Immediate support is placed at 14750.

Source : Equity Bulls

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