IGI Logo

Below is the Technical Quote On Today`s Market Performance by Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After showing smart upside recovery from the lows on Monday, Nifty shifted into an upmove with volatility on Tuesday and closed the day higher by 78 points. Nifty opened on a positive note, made an attempt to move up in the early part of the session. The intraday volatility has emerged in the mid to later part and Nifty finally closed near the highs.

A small positive candle was formed with upper and lower shadow. Technically this pattern could be considered as a high wave type candle pattern and this indicate high volatility in the underlying. Some time, such high wave formation after a reasonable upside or at the key resistance could result in a reversal of the upmove. Hence, any further indication of lack of strength to sustain highs could mean resumption of higher levels weakness in the market.

Weekly 10 period EMA has been acting as a crucial support for the Nifty as per weekly timeframe and significant upside bounce has occurred from near this support (or violating this support marginally) over the last many months. Having turned up from near that support in last week, if the market fails to show further upside from here, then one may expect selling pressure to emerge from the higher levels.

Conclusion: The short term trend of Nifty remains positive, but market's inability to sustain above the hurdle of 14850 could be cause of concern. A sustainable move above 14850-14900 levels could pull Nifty towards the next hurdle of 15050 levels in the near term. Any failure could open weakness from the highs. Immediate support is placed at 14700.

Above views are of the author and not of the website kindly read disclaimer