Below is the Technical Quote On Today`s Market Performance by Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities
After showing a consolidation movement with minor weakness in the last couple of sessions, Nifty shifted into a sustainable upside bounce on Thursday and closed the day higher by 66 points. After opening on a negative note, Nifty showed upside recovery in the early part of the session. It later shifted into a narrow range movement for the better part of the session. Further buying has emerged in the later part and Nifty closed near the highs.
A long positive candle was formed on Thursday, after the formation of doji or high wave type candle pattern of Wednesday. Technically, this pattern could indicate a completion of minor downward correction with range movement of the last two sessions and the market is now ready for further upside.
The market breadth has turned positive, but still not convincing. There is a expectation of further improvement in the breadth as the index moves up. The broad market indices like midcap 100 and small cap 100 of NSE has closed positive by 0.18% and 1.81% respectively.
After the completion of downward correction on 29 Jan, the Nifty initially showed faster upside retracement of the down leg and now completed its two sessions consolidation or minor weakness. The last two sessions consolidation movement has occurred after an upside of 1600 points post budget. This is positive indication and shows strength on an up leg post union budget. Hence, more upside could be in store.
Conclusion: The two days consolidation movement seems to have ended and the bulls are now ready to make a comeback in the market. One may expect further upside towards 15257 and higher in the next 1-2 sessions. A sustainable move above 15260 could pull Nifty towards new upside of 15400-15500 levels in the near term. Immediate support is placed at 15050.
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