Below is the Views On Technical Quote On Today`s Market Performance by Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities
After witnessing a sharp weakness on Monday, Nifty showed minor strength on Tuesday amidst a high volatility and managed to close on a decent gains. A small positive candle was formed with minor lower shadow. This pattern indicates an attempt of bulls to regain the lost ground.
The formation of significant reversal pattern like bearish engulfing of Monday remains intact, as long as Nifty stays below the swing high of 11794. Nifty sustained on a minor support of up sloping trend line at 11365, which is connected from a recent higher lows. This pattern could mean minor upside bounce attempt of the market before showing another round of downward correction from the highs.
Daily RSI has turned below crucial 60 levels. As per its bullish high low range of 75-40 levels, it could slide down to lower 40 over the period of time. Hence one needs to be careful about resumption of further weakness from slightly higher levels. The positive sequence of higher highs and lows of smaller degree is still intact on the daily chart. Monday's swing high of 11794 could now be considered as a new higher high of the sequence. As per this pattern, one may expect further weakness in the short term.
The near term trend status remains negative for the Nifty. Today's upside bounce may be a minor cheering factor for bulls to make a comeback, but the market is expected to reverse down from the highs in the next 1-2 sessions. The recent swing high of 11794 is unlikely to be breached on the upside in the short term. Immediate support is placed at 11365.
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