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

After witnessing a sharp upside bounce on Tuesday, Nifty slipped into a profit booking mode on Wednesday and closed the day lower by 154 points. Nifty opened on a negative note, slipped into further intraday weakness after the opening . It later shifted into a range move with weak bias for the better part of the session. Intraday upside recoveries have met with selling pressure and Nifty closed near the lows. The market breadth was resilient on Wednesday and broad market indices like mid cap 100 and small cap 100 of NSE have closed higher by 0.35% and 0.37% respectively.

A reasonable negative candle was formed on the daily chart, which is placed beside the long bull candle of previous session. This pattern signal failure of the market to sustain above the crucial overhead resistance of 14880 levels. Recently, the area of 14900 has been acting as a key overhead resistance and the short term uptrend has reversed down from this area in past. Hence, any halting of downside momentum from here could bring bulls back into action towards the retest of 14900 levels on the upside.

Though, Nifty is now facing stiff resistance at 14900, there is a possibility of weakness halting at the lows in the next 1-2 sessions, before showing beginning of upside bounce. Hence, further weakness from here is unlikely to breach the recent swing low of 14264-25th March. There is a higher possibility of a formation of new higher low and that could eventually pull the Nifty towards the upper resistance of 14900 levels again.

Conclusion: The market weakness of Wednesday has not impacted much on the short term uptrend status of the market. We are not expecting any major weakness from here and any further decline is likely to form a higher bottom around 14600-14500 and that could eventually pull the market towards the hurdle of 14900 again. Immediate support is placed at 14620.

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