NSE Nifty near term upside targets to be watched around 14600-14800 level: HDFC Securities

Indian equity benchmark indices erased all the intraday losses and rose from intraday lows formed at 10.16 am. They ended near the day's high. At close, the Nifty was up 66.60 points or 0.47% at 14,199.50. Volumes on the NSE were higher than recent average. Among sectors IT, Bank and Media were the main gainers while Metals & Realty were the losers.
 
Most Asian markets reversed early losses Tuesday as hopes for the economic outlook outdid worries over a coronavirus surge, new lockdowns, a slow vaccine rollout and uncertainty over US Senate elections. European stocks were in and out of positive territory on Tuesday morning as investors monitored the coronavirus pandemic and the imposition of further restrictions, along with a U.S. Senate runoff election in Georgia.
 

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Nifty has risen for the 10th consecutive session and has closed at almost 14200 as expected. The momentum is still strong and some more upsides (more in the broader market than the index) is likely over the next few days.
 
The uptrend continued in the market on Tuesday, after showing volatility in the previous session and Nifty closed the day higher by 66 points. After opening on a downside gap of 58 point on Tuesday, Nifty showed smart upside recovery from the intraday lower support of 14080. The opening downside gap was filled and Nifty ended the day with handsome gains.
 
A long bull candle was formed on Tuesday, which indicates a confirmation of small upside breakout of the range at 14000 levels, which is a positive indication. New swing high was formed at 14215 and Nifty closed near the highs.
 
HDFC Securities observes a strength in the upside momentum of Nifty over the last few months and one day sharp weaknesses have turned out to be a buy on dips opportunity in the market. Interestingly, the time consumed from previous to last one day decline is around 16-18 days (taken from the swing low of 24th Sept 2020) and this pattern has occurred for 3 occasions so far. The last one day drop was witnessed on 21st December 2020 and the next possible date for such a decline could be after 6-8 sessions (Between 13-15 Jan).
 
The long term charts like monthly time frame signal sharp upside breakout of the intermediate trend line with confirmation (connecting monthly top to top at 12750-12800 levels) and this area is going to be a strong support during any sharp profit booking in the market.
 
Conclusion: The short term trend of Nifty remains positive. Though intraday profit booking is emerging from the new highs on a daily basis, the strong buying is also witnessing dips. The next Fibonacci projection resistance is at 14310 and the near term upside targets to be watched around 14600-14800 levels. Immediate support is placed at 14080.