Mr. Nagaraj Shetti, Senior Technical Research Analyst, HDFC Securities
The upside momentum continued in the market on Wednesday and Nifty closed the day with gains of 82 points amidst high volatility. After opening with a positive note, the market was not able to sustain above 20950 levels for the day and intraday volatility was seen at the new highs. New all-time high was formed at 20961 and the opening upside gap has been filled completely.
A small negative candle was formed on the daily chart with long lower shadow. Technically, this pattern indicates a formation of dragonfly doji type candle pattern at the all-time highs. Though, this market action alerts caution for bulls at the new highs, but a reasonable decline in subsequent session is likely to confirm short term top reversal for the market.
The short-term trend of Nifty continues to be positive. Having moved up sharply in the last few sessions and the placement of hurdle around 20910 levels (61.8% Fibonacci extension), there is a possibility of consolidation or minor correction from near 21000 levels in the short term. Immediate support is placed at 20800 levels.
