Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities
After showing a sustainable upside bounce on Monday, Nifty shifted in to a narrow range movement on Tuesday and closed the day on a flat note. After opening with a positive note, the market was not able to sustain the early sessions gains for long. Minor weakness has occurred from the highs and later Nifty shifted into a narrow range movement for the day. High low range for the day was around 62 points.
A small negative candle was formed on the daily chart with minor upper shadow. Technically, this market action indicates range bound movement in the market at the highs. This also signal lack of strength in the market to sustain the upside bounce.
Negative chart pattern like lower tops and bottoms continued as per daily chart and Nifty seems to be forming a smaller lower top as of now within a narrow range. The repeated testing of immediate supports around 19300-19250 levels with lack of strength to sustain the highs could eventually result in a downside breakout of the supports. Further upside from here could find strong resistance around 19450-19500 levels.
