Professional Documents
Culture Documents
Nifty
Trend
Support
Resistance
8495
Up
8430
8560
Current Observation:
After showing a sharp upmove on 14th Aug, Nifty shifted into sideways consolidation in the last three sessions. Today
saw yet another similar kind of sideways consolidation pattern.
Nifty opened today with positive note and slipped into intraday decline soon after the opening. It later recovered
smartly from near the immediate support of around 8530 levels and closed the day with the gains of around 28 points.
Three side by side candle pattern after the sharp upmove (14th Aug), which is indicating a lack of selling interest after
the upmove and this could be possibly be considered as an uptrend continuation pattern.
Nifty is currently moving within a triangle pattern (blue converging trend line) and up and down swings are now getting
narrow. This consolidation is expected to witness a sharp upside breakout of the triangle pattern.
RETAIL RESEARCH
Daily momentum oscillator like 14 period RSI has turned flat and the RSI has been moving within a high low band of 6040 levels, which is echoing a larger sideways range movement in the underlying. From the current reading of 52 levels,
if daily RSI moves above 60, then it is presumed as an upside momentum is gaining its strength.
The underlying trend of Nifty continues to be choppy with positive bias and eventually the said pattern could result in a
sharp upside breakout of the larger sideways consolidation very soon.
Hence, the next upside resistance is placed around 8560 levels and immediate support to be watched is at 8430 levels.
RETAIL RESEARCH
This report has been prepared by the Retail Research team of HDFC Securities Ltd. The views, opinions, estimates, ratings, target price, entry prices and/or
other parameters mentioned in this document may or may not match or may be contrary with those of the other Research teams (Institutional, PCG) of HDFC
Securities Ltd.
RETAIL RESEARCH