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Daily Technical View on Nifty

Reversal from near crucial resistance..

Observation: After showing a sustainable upmove over the last six sessions, Nifty slipped into weakness on Monday and closed the day lower by 88 points. After opening on a weak note, the market showed weakness in the early-mid part of the session. Intraday upside recovery of afternoon has failed to sustain and the market slipped again towards the end and closed nearthe lows.

A small negative candle was formed on the daily chart with minor upper and lower shadow. Technically, this pattern indicates a completion of recent uptrend and a beginning of short term downward correction from the highs

Nifty is currently placed at the significant overhead resistance as per change in polarity around 16800 levels as per daily and weekly timeframe chart. Previously, the either side moves from this hurdle have resulted in a sharp movement. Hence, one may expect decent downward correction in coming sessions

The positive sequence of higher tops and bottoms is intact and present weakness could be in line with the formation of higher bottom reversal at the lower levels. Therefore, further weakness from here could open chances of higher bottom reversal formation at the lowsin the near term..

Conclusion: The short term uptrend of Nifty seems to have reversed down from near the important resistance of 16800 levels.

The overall chart pattern indicate further weakness down to 16350-16300 levels in the next few sessions. Intraday resistance to be watched at 16700 levels.

Nifty – Daily Timeframe chart

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