The Nifty posted a positive daily close for the sixth consecutive session. However, the index witnessed a tough battle between the bulls & the bears at the daily upper Bollinger Band and ultimately formed a Doji pattern on the daily chart. So there is a possibility of a brief pause before the index stretches higher. On the downside, 13250-13280 is a near-term support zone and any minor degree dip is likely to find support over there. The overall outlook for the Nifty continues to be positive with the short-term target at 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 12958 and 12539, 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 13316 and 13231, respectively. The hourly momentum indicator is bearish. The market breadth was negative with 918 advances and 980 declines on the National Stock Exchange.

After showing a sharp upmove in the last couple of sessions, Nifty shifted into a consolidation at the new all time high of 13435 today and closed the day on minor gains of 37 points. After opening on a positive note, Nifty shifted into a sustained intraday upmove for the better part of the session. Intraday weakness got triggered from the highs in the early to mid part of the session, but the market has witnessed smart upside recovery for the remaining part and closed near the highs.
 
A small body candle was formed with a long lower shadow. Technically, this pattern indicates a formation of doji type candle patterns at the new all time high of 13435. Normally, a formation of doji pattern after a reasonable high could be considered as a warning signal for the reversal.
 
Presently, Nifty is in a sharp up trended move and few negative candle patterns at the highs have been negated decisively (doji of weekly and bearish engulfing of daily timeframe) and the market continued its upside momentum. Hence, there is no confirmation of any reversal as of now and one may expect further upside in the short term.
 
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Nifty on the weekly chart formed a long bull candle in the last week, post consolidation of the previous two weeks. Presently, another long bull candle is at the verge of forming (another three sessions to come), which could display a strength of bulls at higher levels.
 
Conclusion: The short term trend of Nifty is positive with range bound action. There is a possibility of further upside in the next 1-2 sessions. As we scale higher, there is a higher chance of volatility emerging in the market at new highs. The expected upside levels to be watched at 13500-13600 for the next few sessions. Immediate support is placed at 13300