Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities
After showing an attempt of downside breakout of the immediate support at 19200 levels on Thursday, Nifty witnessed sharp upside bounce on Friday and closed the day with handsome gains of 181 points. After opening with a positive note, the market continued to move up for better part of the session. Minor intraday dips in between have been used as buying opportunity for the day.
A long bull candle was formed on the daily chart, that has engulfed the negative candle of previous session. Technically, this action signal bullish engulfing pattern, but not a classical one. After showing a false downside breakout of 19250 levels on Thursday, the market seems to have reversed sharply on the upside.
Nifty on the weekly chart formed a reasonable bull candle with minor lower shadow. The reversal on the upside has occurred on the weekly chart post five weeks of gradual declines. The formation of bullish pattern like inverted hammer of last week seems to have confirmed this week with sizable upside bounce in the market.
The short term trend of Nifty has turned up and one may expect further upside in the short term. The next overhead hurdles to be watched around 19600 and 19800 levels in the next couple of weeks. Immediate support is placed at 19350 levels.
