Technical View - April 9, 2021 - Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After showing higher levels weakness on Thursday, Nifty shifted into a consolidation on Friday and closed the day lower by 38 points. After opening on a flat note Nifty slipped into minor weakness soon after the opening. It later witnessed upside recovery from the lows, but was not able to sustain above the crucial overhead resistance of 14900 levels and showed weak trend for the better part of the session.

A small negative candle was formed on the daily chart with minor upper and lower shadow. This pattern indicate lack of strength in the market to regain 14900 levels. After the formation of doji at the crucial upside breakout point/ resistance at 14900-14950 levels on Thursday, the weakness was expected in Friday's session. But, the formation of narrow range movement/ small negative candle just below the key overhead resistance could signal that market is not willing to give up.

Normally, such consolidation movements below the important hurdle could eventually result in a sharp upside breakout of the resistance. Before this upmove, the market could extend one more session of consolidation or minor weakness in the early part of next session.

Nifty on the weekly chart has formed a long legged doji type candle pattern in last week. This pattern was formed above the support of weekly 10 period EMA around 14665. However, the formation of doji amidst a range movement doesn't signify any crucial prediction, but having formed this pattern at slightly lower, there is a higher possibility of upside bounce in the coming sessions.

Conclusion: The short term trend of Nifty is range bound. The higher levels weakness has not changed the short term sentiment of the market. The formation of consolidation type pattern just below the key resistance could point a decisive upside breakout of the hurdle in the near term. The chances of range movement for one more session is likely to open higher probability of upside breakout. Immediate support is at 14770.

Source : Equity Bulls

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