Technical Analysis for Today`s Market ( 3 March 2021 ) is based on Market Trend of previous Trading Sessions.
After showing a sustainable upside bounce on Monday, Nifty continued its upside momentum on Tuesday and closed the day with handsome gains of 157 points. After opening on a positive note, nifty made an attempt to move up in the early part of the session. Intraday profit booking has triggered in the early mid part of the session and Nifty showed intraday weakness from the highs. Later on the market sustained the gains and more upside was seen towards the end. The opening upside gap has been filled completely during intraday dip.
A small positive candle was formed with minor upper and lower shadow. Technically, this pattern could be considered as a comeback of bulls from the lows. Further upside from here is expected to result in a reversal of recent down trend of the market.
Nifty is now placed at the verge of moving above and filling the opening downside (26 Feb) and upside (25 Feb) gaps- type of island reversal. Hence, the area of 14920-15065 is expected to be a crucial resistance zone for the market for short term and a sustainable move above 15100 is likely to reverse the trend meaningfully.
Nifty on the weekly chart has taken the support of 10 week EMA around 14350 levels and started to bounce up. Previously, this weekly short term moving average has offered good support for few occasions in past and the market flared up. Presently Nifty is showing sustainable upside bounce, which is likely to bring hopes for bulls for more upside.
Conclusion: The short term trend of Nifty continues to be positive and bulls seems gaining strength in the present upside bounce. The crucial overhead resistance to be watched around 15065 and a decisive move above this gap area could open chances of new highs for the market.
Technical Analysis for Today`s Market by Mr. Mr. Ruchit Jain(Senior Analyst-Technical and Derivatives, Angel Broking):
“Following the positive global cues, we had another session with a positive opening as Nifty started the day above 14850 mark. The index continued the momentum in the first hour of the trade but it then corrected from 14930 and gave up the intraday gains before noon itself. The index then consolidated within a range but it was not over yet. Nifty suddenly witnessed a sharp surge in the last half an hour and surpassed the morning highs to end the day above 14900, with gains of over a percent.
The index has seen a fair bit of volatility in today’s session but the market breadth was in favor of advances throughout the day as we had seen a good stock specific action from the broader markets. The Nifty Midcap index surpassed its recent swing high and is in an uncharted territory, thus showing its outperformance to the benchmark. Even the Auto space today was buzzing as the stocks from the sector rallied sharply post the monthly sales numbers. On the other hand, the banking space showed relative underperformance throughout the day as the banking index is yet to recover the recent losses. From a technical perspective, the Nifty has now entered the Friday’s gap zone of 14920-15065 and hence it would be crucial to see the index movement from hereon.
A move above the gap and then the swing high of 15177 will then negate the recent lower top lower bottom structure on the index. However, since the banking space has not yet shown signs of resumption of the uptrend, we would advise traders to avoid aggressive positions and prefer trading with a stock specific approach from a near term perspective. The intraday supports for the Nifty are placed around 14820 followed by 14760 whereas resistances are seen around 15065 and 15177.”
Technical Analysis for Today`s Market by Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities
“The market has formed a continuation formation followed by the formation of the Harami pattern which it had formed on Monday. This indicates bullishness for the market. The Nifty/Sensex closed between the bearish gap, which it had left between 15065-14919 / 50250-50991 last Friday. The market breadth was also encouraging as along with IT and FMCG we saw bullish activity in financials. Based on the daily chart the Nifty/Sensex is heading for the minimum target of 15065/50750. On the other side, 14830/50100 and 14750/49800 would be major supports. The focus should be on Technology and FMCG stocks.”
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