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Daily Technical View on Nifty

Observation:

After showing weakness in the last couple of sessions, Nifty shifted into a consolidation on Tuesday and closed the day with minor gains. After opening with an upside gap, the market shifted into a narrow range movement at the lows for better part of the session. Volatility has occurred in the mid to later part and Nifty finally closed the day with upside recovery note towards the end. The opening upside gap has been filled completely.

A small negative candle was formed on the daily chart with minor lower shadow. Tuesday's candle pattern was formed beside the similar candle of previous session. Technically, this pattern indicates a choppy movement in the market with weak bias. Nifty is currently showing signs of slowing down of downside momentum and is placed at the support of 10 day EMA around 19650 levels.

The positive chart pattern like higher tops and bottoms is intact as per daily timeframe chart and the market is currently in line with new higher bottom formation, which needs to be confirmed

Conclusion:

The short term movement of Nifty is choppy. Having placed at the support, there is a possibility of an upside bounce in the short term towards the immediate resistance of 19800-19850 levels in the short term. The next support is placed at 19600 levels.

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