Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities
After showing upmove in the last three sessions, Nifty shifted into a consolidation with positive bias on Tuesday and closed the day higher by 18 points. After opening on a negative note, the market has witnessed gradual upside recovery from the lower levels. Intraday dips in between have been used to move up in the mid part. The opening downside gap has been filled completely and Nifty closed at the highs.
A reasonable positive candle was formed on the daily chart after opening lower. This pattern indicate an emergence of buying interest from the lows. After the display of lack of strength during upside breakout of significant resistance at 15800 levels (resistance as per change in polarity), the market showed minor upside bounce from the dips and closed at the highs.
Having sustained above the important area of 15750-15800 levels, there is a possibility of further upside from here towards the next important resistance of 16180 levels (opening downside gap of 13th June).
On the other side, the level of 15800 has been a significant value area and has resulted in a formation of long range bear candle during its recent downside breakout (16th June). Hence, further choppy or range bound movement above 15800 levels (absence of strong upside momentum) could signal chances of false upside breakout and that could possibly bring bears into action. Immediate resistance is placed at 15950 levels.