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Daily Technical View on Nifty

Range movement near the supports..

Observation: After showing sharp weakness in the last couple of sessions, Nifty slipped into follow-through weakness amidst a range movement on Tuesday and closed the day lower by 124 points.

After opening with a downside gap of 147 points, the market made an attempt of minor upside recovery in the early part of the session. It later shifted into a range movement for better part and showed upside recovery towards the end. The opening downside gap remains unfilled.

A small positive body candle was formed on the daily chart with minor upper shadow. Technically, this market action signal range bound action in the market with weak bias. Normally, such formations post reasonable decline indicate an upside bounce from the lows.

Nifty is currently placed near the crucial support of ascending trend line as per weekly chart and near lower end of an ascending channel on the daily chart around 22,000 levels. Hence, there is a possibility of a bounce in the short term.

Conclusion: The short-term trend remains weak. But, having placed near the cluster support of around 22000 levels, one may expect upside bounce from the lows in coming sessions. Immediate resistance is at 22260 levels.

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