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Daily Technical View on Nifty

Revisit of crucial supports..

Observation: After showing a sustainable upside bounce on Monday, Nifty has witnessed reversal on the downside on Tuesday and closed the day lower by 187 points.

After opening with a positive note, the market failed to sustain the opening gains and slipped into weakness in the early to mid part of the session. The intraday upside recoveries of mid part has been used as a sell on rise opportunity.

A long bear candle was formed on the daily chart, which indicates sharp reversal of the upside bounce of previous session. This pattern indicates completion of recent upside bounce and the market is poised for further weakness. Nifty is now revisiting crucial lower support of 17800 levels and this repeated testing of supports could eventually result in a decisive downside breakout of the support area.

Conclusion: The short term trend of Nifty continued to be weak and the market is expected to break down the lower support of 17800 levels in the short term.

The anticipated downside breakout could open the immediate downside target of around 17400 levels in the near term. Any pull back rally could find resistance around 18150 levels

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