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Daily Technical View on Nifty

Upside bounce with high volatility..

Observation:

After showing weakness with volatility on Wednesday, Nifty shifted into an upmove with high volatility on the day of weekly expiry-Thursday and closed the day higher by 206 points. After opening with a positive note, the market showed lackluster type movement in the early-mid part of the session. The upside momentum picked up sharply in the mid part, but the market was not able to sustain the day's high towardsthe end

A small body of positive candle was formed on the daily chart with upper and lower shadow. Technically, this pattern indicate an upmove with high volatility. The uncertainty with regards to trend continued, as the market faced strong overhead resistance around 17300 levels. The present confusion state of mind in the market participant could drag Nifty down to 16900 levels again in the short term.

The alternative candle pattern like one day of up and down moves continued in Nifty for the last four sessions. After the upmove with high volatility of Thursday, the weakness can't be ruled out in the next 1-2 sessions. The repeated testing of crucial lower supports and lack of strength to sustain the highs could be a cause of concern for the market . The decisive upside breakout of present broader range could only occur above 17500 levels.

Conclusion:

The short term trend of Nifty has turned up again as per smaller timeframe chart. But, the volatile movement and minor downward corrections are not ruled out in the near term. Strong resistance is placed around 17300-17350 levels and the crucial lower support is at 17900 levels.

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