Market Commentary

Technical View - Oct 13, 2021 - Mr. Subash Gangadharan, Senior Technical and Derivative Analyst, HDFC Securities

Posted On : 2021-10-13 17:31:24( TIMEZONE : IST )

After showing range bound movement with positive bias in the last four sessions, Nifty witnessed a sharp upside breakout on Wednesday and closed the day higher by 169 points. After opening on an upside gap of 106 points on Wednesday, Nifty continued its upside momentum with range bound action for the entire session. Minor intraday dips were used as buy on dips opportunity for the day. The opening upside gap remains unfilled.

A reasonable positive candle was formed with gap up opening. Technically, this pattern indicate an upside breakout of crucial overhead resistance at 18K mark. This is positive indication and one may expect follow-through buying in the coming sessions.

Daily 14 period RSI has turned up from near 60-65 levels and daily ADX/DMI oscillator shows positive indication. This could mean more scope for upside for the market ahead. Nifty on the weekly time frame chart also indicate chances of an upside breakout of the range movement.

Conclusion: The short term trend of Nifty continues to be positive. Having closed above the hurdle of 18K mark, there is a possibility of further upside in the coming sessions. Next upside levels to be watched around 18400-18500 in the next one week. Immediate support is placed at 18050 levels.

Source : Equity Bulls


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