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

After showing upside bounce in the last three sessions, Nifty reversed down sharply on Wednesday and closed the day with hefty loss of around 265 points. After opening on a negative note, Nifty slipped into weakness in the early part of the session. It later shifted into a range move with an attempt of upside recovery. The sharp intraday weakness triggered in the later part and Nifty closed near the lows.

A long negative candle was formed and this indicate a reversal pattern of the last few sessions upmove. Hence, the formation of high wave type candle pattern of Tuesday has turned out to be a reversal pattern as of now. This is negative indication and signal more downside in coming sessions.

Nifty is forming lower highs and lows on the daily chart and is expected to revisit the lower gap support of 14350 in the short term. This could also mean further down move below the crucial weekly 10 period EMA as per weekly chart at 14580 levels.

Previously, this moving average has offered good support for the market in the subsequent weeks and led to upside bounce in past. Hence, Nifty not finding support of this moving average this time could mean a chances of broad based weakness beginning in the market.

Conclusion: The short term trend of Nifty seems to have reversed down after a small upside bounce. Next lower levels to be watched around 14350-14300 in the next few sessions before showing another round of small upside bounce from the lows. Any pullback rally could find resistance around 14675-14750.

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