Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities
After showing a range bound action with weak bias on Friday, Nifty shifted into an upside bounce with lackluster movement on Monday and closed the day higher by 40 points. After opening with a positive note, the market struggled to sustain the opening gains in the early part of the session. It later shifted into an upside bounce in the mid part of the session and showed intraday weakness from the day's high towards the end.
A small positive candle was formed on the daily chart with upper and lower shadow and with almost identical open and close. The said market action indicates a formation of doji pattern, not a classical one. Normally, such doji formations after a reasonable upmove or down move indicates trend reversals. But, having formed this pattern beside the negative candle of Friday signal range bound action in the market.
The short term trend of Nifty remains weak. As long as, it trades below 19400 levels, there is a chances of further weakness down to the next supports of 19100-19000 levels. A decisive move above the immediate resistance of 19370-19400 could open the next upside towards 19600 levels for the short term.
