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Daily Technical View on Nifty

Observation:

After showing range bound action in the last few sessions, Nifty continued with volatility with weak bias on Friday and closed the day lower by 55 points. A small body candle was formed on the daily chart with long upper shadow. Technically, this pattern indicates lack of strength in the market to sustain the upside bounce. Negative chart pattern like lower highs and lows is intact and the Nifty is currently on the way down to form a new lower low. We observe a broader triangle type pattern on the daily chart and the market is currently placed at the edge of breaking below the lower support of 19300- 19250 levels. Nifty on the weekly chart continued with weakness for the fourth consecutive weeks. A reasonable negative candle was formed on the weekly with minor upper shadow. This reflects ongoing weakness in the market with sell on rise opportunity. Nifty is now sliding down to an important support band of 19000-18900 levels as per the concept of change in polarity, according to weekly timeframe chart.

Conclusion:

The short term trend of Nifty continues to be weak with range bound action. There is a possibility of downside breakout of the immediate support at 19300-19250 levels in the short term Further weakness from here could drag Nifty down to another crucial support area of 19000-18900 levels in the near term, where one may expect a sizable upside bounce from the lows. Any intra-week upside bounce from here could find resistance around 19500 levels, which could possibly be a sell on rise opportunity

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