Below is the Views On Technical Quote On Today`s Market Performance by Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities
After showing minor upside bounce from the lows on Wednesday, Nifty shifted into a sharp upside bounce on Thursday and closed the day on a hefty gains of 171 points. A long bull candle was formed with gap up opening and the opening upside gap remains unfilled. This market action could bring some hopes for the bulls to make a comeback from the lows.
Nifty is currently placed at the cluster resistance of opening downside gap area of 4th Sept, minor up sloping trend line on the daily and significant intermediate trend line on the weekly chart (as per role reversal) around 11450-11500 levels. Hence, this area is going to be a crucial hurdle for the market in the short term. A renewed buying participation could only occur above this resistance.
Technically, the formation of bearish engulfing pattern of daily and weekly timeframe are indicative of important reversal point for the market. Hence, as long as the high of that engulfing candle pattern is protected at 11794, the underlying short term to be considered as a weak or choppy.
Today's sustainable upmove could be a cheering factor for bulls to resume their participation. Unless the upside area of 11500-11550 is crossed decisively on the upside, the selling pressure can't be ruled out from the highs in the next few sessions. Immediate support is placed at 11360.
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