Below is the Quote On Today’s Market Performance by Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities
After showing consolidation type of movement with weak bias on Thursday, Nifty showed promising upmove amidst a range movement on Friday and closed the day higher by 94 points. A small positive candle was formed with lower shadow on the daily time frame chart, which indicate gradual comeback of bulls from the lower levels.
Friday's positive candle with upside gap signals a formation of doji type pattern (not a classical one) at the highs. Nifty reversing up after weakness of Wednesday and Thursday could signal lack of follow-through selling pressure, after reversing down from a crucial upside resistance of 10550 on Wednesday (resistance of previous swing lows of Jan-Feb 19).
Nifty on the weekly chart formed a high wave type candle formation near the key upside resistance of 10550-600 levels. Positive chart pattern like higher highs and higher lows continued as per weekly chart and Nifty is placed to form a new higher high of the sequence. But, still there is no confirmation of any higher top reversal.
The short term trend of Nifty has turned into positive, after the minor weakness from the highs. There is possibility of further upside in the early next week and one may expect Nifty to retest the overhead resistance of 10550-600 levels in the mid to later part of coming week. Immediate support is placed at 10280.
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