Below is the Technical Quote On Today’s Market Performance by Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities
After showing higher levels weakness on Wednesday, Nifty shifted into a consolidation with range bound movement on Thursday and closed the day lower by 16 points. A small body of positive candle was formed, which closed near the low of Wednesday's negative candle. Technically, this pattern indicates consolidation movement in the market.
Nifty not showing any sharp follow through declines on Thursday, after the formation of bearish engulfing type candle pattern of Wednesday could slightly favor bulls to make a comeback from the lows. The present negative reversal could completely negate on a sustainable move above 10550 levels.
Nifty is placed at the hurdle at 10550 levels (on the daily and weekly timeframe chart). Further slowdown in the downside momentum could eventually make bulls to comeback from the lower levels.
The short term trend of Nifty is still negative. Lack of sharp follow-through weakness could bring some hopes for bulls in the short term. A sustainable move above the intraday resistance of 10360 could mean possibility of further upside bounce. On the other side, a move below 10200 is expected to drag Nifty towards the next lower support of 10,000 levels in the near term.
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