Nifty makes fresh all-time highs: HDFC Securities says 13900 is near term upside target to be watched

Nagaraj Shetti, Technical & Derivatives Analyst of HDFC Securities highlights that the consolidation movement continued in Nifty today and the market closed on modest gains of 44 points. After opening on a positive note, Nifty slipped into a gradual intraday weakness from the highs in the morning session. The range bound movement continued for the second half and minor intraday dips have witnessed an emergence of buying in the mid to later part of the session. The opening upside gap has been filled completely at 13515.
 
A small body of negative candle was formed today with lower shadow. The Nifty registered a new high of 13597 on Monday, before showing intraday consolidation movement. Technically, this market action could be considered as a part of a range movement in the market with positive bias.
 
On the daily chart HDFC Securities observes continuous higher highs over the last many sessions and we also see formation of a large number of lower shadows in the candles. This pattern could signal a strength of upside momentum in the market with emergence of buying in small dips. This is a positive indication and one may expect further upside in the short term.
 
Conclusion: The short term trend of Nifty continues to be range bound with positive bias. The near term upside target to be watched at 13900 and there is a possibility of one day dip in the market, before reaching an upside trajectory. Immediate support is placed at 13450.
 
Sharekhan says Nifty continues to trade in the rising channel on the hourly chart. After a positive start, an intraday dip dragged down the index; but the index found support near the lower channel line as well as near the key hourly moving averages and the Nifty recovered thereon. Though the upside momentum has weakened in the last few sessions the bulls are managing to hold on the support parameters. Hence as long as the Nifty trades above the support zone of 13450-13400, it is expected to stretch towards 13700

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Other technical observations:

On the daily chart, the Nifty is above the 20-day moving average (DMA) and the 40-DEMA, of 13123 and 12717, respectively. The momentum indicator is bearish on the daily chart. On the hourly chart, the Nifty is above the 20-hour moving average (HMA) and the 40-HEMA, of 13505 and 13441 respectively. The hourly momentum indicator is bearish. The market breadth was positive with 1204 advances and 697 declines on the National Stock Exchange.