Below is the Technical Quote On Today`s Market Performance by Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities
Nifty slipped into weakness on Monday amidst a range movement and intraday volatility and closed the day lower by 62 points. A long negative candle was formed today and Nifty is now placed at the lower end of the band at 11100 levels (within a high low range of 12240-11100). The broader market indices like mid and small cap segments and Bank Nifty have underperformed the benchmark Nifty, suggesting inherent weakness in the market.
Today's decline is so far not showing any reversal indication in the market. a sustainable move above 11250 and a sharp weakness below 11050 levels is expected to bring sharp momentum into the market on either side.
In the last one month, intra-week declines have been absorbed and buying has been emerged from the lows. Hence Monday's weakness could be a considered as a buying opportunity as long as the lower support of 11050 holds firmly.
We observe a narrow range movement in Nifty 60 mins intraday chart. Nifty struggled to sustain the intraday upside recovery after the weakness from the highs of 11200-225 levels in the last few sessions. At the same time, long term charts like weekly and monthly timeframe indicates that the upper area of 11250-11350 could be a key overhead resistance or may be a significant reversal point as per the concept of change in polarity.
The short term trend of Nifty is range bound with weak bias. The momentum in the market could expand only a sustainable move beyond the range of 11250 and 11050 levels in the short term. Upside breakout could pull Nifty towards 11550 and a downside breakout of the range open lower target of 10900-10850 in the near term.
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