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Daily Technical View on Nifty

Lack of strength to sustain the highs..

Observation:

After showing sharp weakness on Tuesday, Nifty shifted into a consolidation on Wednesday and closed the day lower by 36 points.

Nifty opened with a negative note and showed minor upside recovery from the lows in the early-mid part of the session. The market was not able to surpass the intraday hurdle around 24600 and turned down in the afternoon to later part of the session.

A small positive candle was formed on the daily chart with upper shadow. Technically, this formation indicates a type of bullish inverted hammer type candle pattern, not a classical one. A sustainable move above the high of this pattern at 24605 could confirm the positive pattern for the short term.

Negative chart pattern like lower tops and bottoms is intact as per daily timeframe chart. Having declined from the recent lower top of 24978 on 21st Oct, there is a probability of minor upside bounce in the short term to form a new lower top of the sequence.

Conclusion: The underlying trend of Nifty remains weak. Having placed around the crucial supports as per weekly chart, one may expect chances of an upside bounce from here or from the lows.

A sustainable close only above 24650-24700 levels could confirm upside bounce. However, a slide below 24350 is likely to drag Nifty down to 24K mark in the near term.

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