Nifty shows lack of follow-through upside on charts: Check key levels

Nifty erased all the intraday gains in the last hour of trade and ended in the negative zone in a highly volatile session on April 30. Nifty formed a shooting star like pattern on daily charts after facing resistance from around an earlier high of 22,775. 

Nifty shows lack of follow through action on the upside. It formed a higher top and could form a higher bottom shortly. On monthly charts, Nifty gained 1.24 per cent for the month of April. Nifty could now face resistance at 22,783 while 22,447 could offer support in the near term.

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Stock price is on the verge of breaking out from the consolidation which held for the last 10 weeks. Price rise is accompanied by rise in volumes. Primary trend of the stock has been bullish with higher tops and higher bottoms on the weekly chart. Stock is placed above all important moving averages, indicating bullish trend on all time frames. Indicators and oscillators have been showing strength in the current uptrend.

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Stock price has broken out from the consolidation which held for the last two weeks. Price rise is accompanied by a rise in volumes. Short term moving averages are trading above long term moving averages, which indicates a bullish trend. Indicators and oscillators have been showing strength in the current uptrend.

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Disclaimer: Vinay Rajani is CMT, Senior Technical & Derivative Analyst, HDFC Securities. Views expressed are personal.