Below is the Technical Quote On Today`s Market Performance by Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities
High volatility continued in the Nifty for the second consecutive sessions on Wednesday and the market closed on a flat note. After opening on a slightly positive note on Wednesday, Nifty witnessed 'Roller Coaster' ride for the entire session. There was a display of high volatile swings of around 100 points every time during the day. Nifty finally settled with a sharp upside recovery note towards the close.
Another high wave type candle was formed with minor upper and long lower shadow. Technically this pattern again signal confusion state of mind among participants at the highs, which is now leading to volatility. But the formation of long lower shadow could signal an emergence of sharp buying on dips. As long as Nifty shows similar consolidation for the next 1-2 sessions then odds of sharp upside bounce can't be ruled out.
After showing intraday weakness from the new high of 15257 on Tuesday, Nifty showing sharp upside recovery in the subsequent session could be positive indication. This signals lack of sharp downward correction in the market after a rise of 1600 points from 29th Jan low/post budget. This action could bring hopes for bulls to make a comeback from the lower levels.
The opening upside gap of 8th Feb has been filled at 14977 (not filled completely as per intraday chart) and that area has offered a strong support as of now. The gap area of 14950-15000 is going to be crucial support for the market for short term. On the upper side, a sustainable move above 15257 could open the next upside towards 15400-15500 levels in a week's time.
Conclusion: The underlying trend of Nifty is volatile with positive bias. The market action like lack of sustainable selling from the highs and emergence of sharp buying from the lows could eventually result in a strong comeback of bulls in the next few sessions. This expectation could alive, as long as the support of 15000-14950 holds firmly.
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