Technical View - April 22, 2021 - Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After showing sharp sell on rise on Tuesday, Nifty witnessed an upside bounce again from the support of 14200 levels on Thursday and closed the day higher by 109 points. Nifty opened on a downside gap of 77 points and slipped further into weakness after the opening. A sustainable intraday upside recovery has emerged from the day's low of 14151 and the upside momentum was seen in the afternoon to later part of the session. Intraday minor declines were used as buy on dips opportunity for the day.

A long bull candle was formed on the daily chart with minor lower shadow. Technically, this pattern could mean another upside bounce from the crucial support of 14200 levels. New swing low was formed at 14150, before showing upside bounce from the lows. The candle pattern of Thursday is signalling another short term upside bounce in the market. But, the sustainability at the highs could be doubtful. Immediate resistance is placed at 14500 levels.

Nifty on the intraday chart like 60 mins timeframe is placed to form yet another lower top around 14425-14450 levels. The Intraday chart pattern of the last four sessions signal a formation of descending type triangle pattern (consistent lower highs and repeated hitting of lower support). This pattern could indicate chances of another sell on rise in the next few sessions and the revisit of lower support at 14150-14200 levels again in the near term.

Conclusion: The short term trend of Nifty seems to have reversed up from the lows. But the fear of sharp sell on rise is still persist until 14560 level is surpassed decisively on the upside. The intraday chart setup could signal a possibility of another sell on rise around 14450-14500 levels in the next 1-2 sessions.

Source : Equity Bulls

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