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Daily Technical View on Nifty

Absence of follow-through weakness..

Observation: After showing sharp weakness from the new all time high on Friday, Nifty shifted into an upside bounce amidst volatility on Monday and closed the day higher by 24 points.

After opening with a positive note, the market made an attempt to move up in the early part of the session. Volatility continued for better part and the market closed the day with modest gains towardsthe end.

A small negative candle was formed on the daily chart with minor upper an lower shadow. This pattern was formed within a high low range of long negative candle of Friday, which is signaling an inside day pattern.

After the sharp weakness of Friday, Nifty failing to show any follow-through weakness in subsequent session could be a sigh of relief for bulls.

Conclusion: The short term trend of Nifty remains choppy. There is a possibility of another attempt to scale towards upper range of 19500 levels in the short term.

However, any weakness below the immediate support of 19300 levels could drag Nifty towards the next crucial support of 19200-19000 levels in the near term. Fresh buying could only emerge on a decisive upside breakout of 19500 levels.

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