Nifty in Uptrend, Faces 8840 Hurdle
The market gained considerably post Budget and will continue to remain in an uptrend in the coming days. If the hurdle of 8840 is crossed, the Nifty could move between the 8900 and 9100 range. Going ahead, the RBI policy meet and assembly elections are unknowns that could sway the market in either direction.
NAGARAJ SHETTI What is in store?:
Nifty witnessed an excellent upmove in the last two weeks and moved into new swing high of around 8757 levels on Thursday.
Over the last 5-6 weeks, we observed formation of more number of long bull candles on the way up and relatively small bear candles during declines or minor corrections. One day weakness/downward reversals have not seen followthrough moves so far. This pattern is displaying an inherent strength in the market and indicates more upside for near term.
As per weekly timeframe, a bull candle has been formed last week with long lower shadow, indicating an emergence of buying interest from the lows. is now advancing towards the next important
of down sloping trend line (connecting the top of 9119-March-15 with 8968–Sept 16) around levels.
What could investor do?: The underlying trend for Nifty as per smaller and larger timeframe is up and some more upside is likely for the next couple of weeks. The
to be watched is around which could be achieved in the next 2 or 3 weeks.
are expected to perform in line with the index. PUSHKARAJ KANITKAR
TECHNICAL RESEARCH ANALYST, HDFC SECURITIES GEPL CAPITAL - AVP, TECHNICAL RESEARCH
Where are we?: After hitting the lows around 6825 last year on the Budget day, the Nifty did move onto the high of 8925 in September 2016. However, it failed to cross onto the all-time highs of 9119 that it had created in March 2015. The fact that Nifty has already crossed above the 61.8% retracement level of this recent down leg with quiet a pomp and sustained it on weekly basis speaks of the strength of the markets.
What is in store?: By the logic of higher tops & higher bottoms, the market may climb onto
A gradual rise is what we expect from here on, with intermediate corrective moves that may give an opportunity to buy on dips. The are placed at followed by the previous swing high of 8925. On the flip side, this week’s low at and the 3-week low at be the levels to the
What could investors do? We feel the markets would continue to remain in a rational uptrend going ahead, and it would be prudent to ride it. The strategy to would on
mentioned above would give the tactical edge. Also, it would be a good idea to buy on dips around the supports, as & when the corrections occur.