Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities
After showing a range bound action in the last few sessions, Nifty continued with volatility with weak bias on Friday and closed the day lower by 55 points. After opening with a negative note, the market shifted into a range bound action with weak bias for better part of the session. Intraday upside recovery in the mid to later part was not successful and Nifty closed near the lows.
A small body candle was formed on the daily chart with long upper shadow. Technically, this pattern indicates lack of strength in the market to sustain the upside bounce. Negative chart pattern like lower highs and lows is intact and the Nifty is currently on the way down to form a new lower low. We observe a broader triangle type pattern on the daily chart and the market is currently placed at the edge of breaking below the lower support of 19250 levels.
The short term trend of Nifty continues to be weak with range bound action. There is a possibility of downside breakout of the immediate support of 19250 levels and the Nifty could slide down to another base area of 19100-19000 levels in the near term. Any upside bounce could find resistance around 19400 levels.
