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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 weakness from the highs on Wednesday, Nifty witnessed another free fall on Thursday amidst a volatility and closed the day lower by 224 points. Nifty opened on a slight positive note and started to show sharp intraday weakness from the early part of the session. A fine intraday upside bounce has occurred towards the end, but the market failed to sustain the upside recovery and finally closed near the lows.

A long bear candle was formed, that filled the opening upside gap of 2nd Feb at 14350 levels. A new swing low was formed on Thursday at 14264 levels and the market is now placed at the edge of moving below this gap support.

Positive divergence pattern has started to form on the daily chart, which is needs to be confirmed. Nifty on the weekly chart has moved below the weekly 10 period EMA at 10550 as of now. But, the market action of Friday is likely to confirm this moving average pattern. Having showed upside bounces from this moving average supports in past, if Nifty manages to close below this moving average this time, then one may expect weakness to continue further.

Conclusion: The short term trend of Nifty continues to be weak and a decisive move below 14300 levels could drag towards the next lows of 14000 levels in the near term. This support is a mid part of long bull candle of 1st Feb (budget day move) and also 20 period weekly EMA. Any upside bounce from here is expected to find resistance at 14500 levels.

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