Below is the Technical Quote On Today’s Market Performance by Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities
An excellent up run in the market of the last few sessions seems to be over, as Nifty witnessed sharp profit booking from the new swing high of 10553 levels on Wednesday. A long bear candle was formed at the swing high and that has almost engulfed the high low range of positive candle of Tuesday. This could be considered as a bearish engulfing pattern (not a classical one).
Normally, a formation of bearish engulfing patterns after a reasonable upside or near the hurdle could indicate possible reversal pattern. Hence, there is a possibility of follow-through weakness in the coming session.
Positive sequence of higher tops and bottoms continued on the daily chart and today's high of 10552 could now be considered as a new higher top of the sequence. Hence, there is a possibility of some more weakness in the short term.
The short term trend of Nifty is negative. One may expect further declines down to 10200-10150 levels in the next couple of sessions. Immediate resistance to be watched at 10425 levels.
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