Below is the Technical Quote On Today`s Market Performance by Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities
After showing sharp weakness on Tuesday, Nifty witnessed high volatility today and closed the day on a nominal gains of 10 points. A small negative candle was formed on Wednesday with long upper shadow. This pattern signals instability of bulls to sustain the higher levels.
Nifty is currently placed at the edge of moving below the trend line support at 10600 and Wednesday's selling pressure from the highs could signal that the said support could eventually broken on the down side.
The larger degree of rising wedge is intact and Nifty is placed near the upper end of this pattern. Nifty showing instability to sustain the highs could mean that the said rising wedge pattern is likely to be broken on the downside. At the higher levels, intermediate resistance is intact around 10800-10900 levels (as per weekly/monthly timeframe charts) and Nifty decisively surpassing above that area could be doubtful in the near term. Daily 14 period RSI also shows negative indication.
The short term trend of Nifty is weak. Wednesday's higher levels weakness could signal a possibility of more declines in the short term. Any intraday upmoves could run into resistance. The selling momentum is expected to be picked up on a slide below 10550. The down side targets for Nifty to be watched around 10350-10300 for the next one week. Immediate resistance is placed around 10750-10800 for the next few sessions.
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