Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities
After showing upside recovery from the intraday lows in the last couple of sessions, Nifty slipped into weakness on Thursday with broad range movement and closed the day lower by 99 points. After opening with a slightly negative note, the market continued to show weakness for better part of the session. Intraday upside recoveries in between have been used as sell on rise opportunity.
A triangle type pattern is unfolding on Nifty as per daily timeframe chart and the market is currently placed near the lower end of a pattern around 19300 levels. The attempt of upside recoveries from the intraday lows have been reversed on Thursday. The negative chart pattern like lower tops and bottoms is active on the daily chart and the market has not shown any decisive upside bounce so far.
The short term trend of Nifty remains choppy with weak bias. There is a possibility of downside breakout of the key lower support around 19300-19250 levels in the short term and that could possibly drag Nifty down to another supports of 19100-19000 levels in the near term. Any rise from here could find strong hurdle at 19600 levels.
