After the upside breakout of the hurdle of downsloping trend line at 17250 levels on Friday, Nifty witnessed sharp upmove on Monday and closed the day with hefty gains of around 271 points. After opening with a positive note, the market has started to show upside momentum since opening. The gradual upmove continued for the better part and the upmove got strengthened during afternoon to later part of the session.
A long bull candle was formed on the daily chart post upside breakout of the crucial overhead resistance of down trend line on Friday. This is an indication of sharp comeback of bulls and this display strengthening of upside momentum in the market. This is positive indication and one may expect further upside in the short term.
The negative sequence of lower tops and bottoms on the daily chart is now placed at the edge of negation, as Nifty moved above the last lower top of 13th Dec at 17639 levels on Monday. This could mean that the bearish set up is likely to be negated and any dips from here could unfold a bullish set up like higher highs and lows, as per daily chart.