Technical View - April 27, 2021 - Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After showing intraday weakness from the highs in the last couple of sessions, Nifty witnessed sharp upmove on Tuesday and closed the day higher by 168 points. After opening on a positive note, Nifty continued its sustainable upmove for the whole session. Minor intraday dips have been used as buy on dips opportunity for the day.

A long bull candle was formed, which signal an emergence of strong buying in the market. After showing higher levels weakness at the immediate hurdles for few occasions, Nifty finally showed initial sign of strength today by closing above the hurdle of previous opening downside gap around 14600 levels (19th April). This is positive indication and signal more upside in the near term.

The display of strength on Tuesday (by closing above the immediate resistance) and also a false downside breakout of the lower range at 14200 levels (22nd April) could signal that the market is ready to move up further and test the upper range of 14900 + in the near term.

Nifty on the weekly chart, sustained above the weekly 20 EMA around 14200 and bounced up in this week so far. The formation of three doji type candle patterns on the way down in the last three weeks could signal a possibility of sharp upside bounce ahead.

Conclusion: The bearish pattern of sell on rise has been negated and a sustainable upside bounce was seen from the lower range of 14200. This is positive indication and one may expect Nifty to test the upper range of 14900-15000 levels in the next one week. Any intra-week dips down to the support of 14500-14400 levels could be a buying opportunity.

Source : Equity Bulls

Keywords