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 slipped into decline on Tuesday and closed the day lower by 96 points. A long bear candle was formed with minor lower shadow. This pattern signal dominance of bears to show follow-through weakness.
Nifty showing weakness on Tuesday could open further weakness in the market for near term. In the last 3-4 occasions, the market has failed to witness sharp follow through declines, as it managed to show upside bounce after one session of sharp decline, in the last couple of months. This is not a good sign for bulls to sustain the highs..
Currently, Nifty is placed below the crucial support of previous swing high at 11185 (9th Sept). Hence, any decisive move below this area could open more weakness in the near term. Today's action of follow-through decline could rule out any possibility of strong upside bounce emerging from here or from the lows.
Under this circumstance, the last swing high of 11794 and the bearish engulfing pattern of daily and weekly timeframe could now be considered as an important top reversal pattern for the Nifty and that swing high is unlikely to be breached on upside in a hurry.
The short term trend of Nifty continues to be negative and now bear's have started to dominate the market. The immediate support of 11150 -11100 is going to be broken lower in the short term and the market could slide to further lows. Any upside bounce attempt could encounter strong resistance around 11350-11400 and the near term downside target is intact at 10700.
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