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Daily Technical View on Nifty

Observation:

The downward correction continued in the market for the third consecutive session on Thursday and Nifty closed the day lower by 168 points. After opening with a downside gap of 84 points, the market slipped into further weakness in the early part of the session. Intraday upside recovery of mid part has failed to sustain and the weakness got intensified in the mid to later part of the session and Nifty closed at the lows. The opening downside gap has been filled completely.

A reasonable negative candle was formed on the daily chart with minor upper shadow. Technically, this pattern indicate a continuation of weakness in the market. The positive sequence of higher tops and bottoms is into play. After the formation of new higher top at 18114 on 4th April, the market is showing weakness from the highs towards the formation of new higher bottom. But, there is no confirmation of any higher bottom reversal as of now.

Conclusion:

The short term trend of Nifty continues to be negative. Presently, the daily 10 day EMA is offering support 17600 levels and the crucial support is placed around 17450-17500 levels as per the concept of change in polarity. Friday's outcome of RBI's mid quarter policy meet is expected to show fresh direction for the market. However, we expect Nifty to witness upside bounce from the lows of around 17550-17450 levels in the next couple of sessions

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