After showing an upside bounce from the lows of 15635 levels on Friday, Nifty shifted into a decent upmove on Monday and closed the day higher by 112 points. After opening on an upside gap of 71 points, Nifty showed follow-through upmove for the entire session. Intraday dip of mid part has turned out to be a buy on dips opportunity. The opening upside gap remains unfilled.
A reasonable positive candle was formed with minor lower shadow. Technically this pattern indicate a confirmation of bullish reversal pattern, post formation of hammer on Friday. Technically this pattern signal uptrend continuation for the short term.
The low of Friday at 15635 could also be considered as a new higher bottom of the sequence. Hence, one may expect Nifty to reach up to the crucial overhead resistance of around 15900 and higher and higher in the next 1-2 sessions.
Nifty on the weekly chart witnessed minor weakness in the last week, after a formation of long bull candle in the previous week. The upmove of this week is expected to surpass the crucial overhead resistance of the last three weeks at 15900 levels.
Conclusion: The upmove of Monday seems to have confirmed the bullish reversal of Friday and one may expect upmove towards 15900 levels or higher in the next 1-2 sessions. The upside area of 15900-16100 is going to be crucial to sustain for the short term. Any lack of strength to sustain the highs is likely to result in another downward correction from the highs. Immediate support is placed at 15740.