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Daily Technical View on Nifty

Placed at the crucial lower support..

Observation: After showing a sharp upside bounce from the lows on Friday, Nifty witnessed reversal on the downside on Friday and closed the day lower by 207 points. After opening with a flat note, the market failed to sustain the opening ground and started with weakness from early part. Intraday upside bounce of mid part has eventually resulted in a sell on rise opportunity andNifty closed nearthe lows.

A long bear candle was formed on the daily chart, that has engulfed more than half way mark of previous long bull candle of Friday. Technically, this pattern indicates a lack of strength to sustain the highs. But, having placed near the important supports, a sustainable upside bounce cant be ruled out from near 16750-16800 levels.

Conclusion: The short term trend of Nifty remains choppy. Having placed near the crucial lower support of 16800 levels, upside bounce is due forthe market. Any sustainable move only above the hurdle of 17200- 17300 levels could bringbulls back into the action.

On the upside immediate resistance is now placed at 17150 for the day. The immediate support is at 16800 levels.

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