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Daily Technical View on Nifty

High volatility near the supports..

Observation: 

After showing weakness in the last three sessions, Nifty witnessed high volatility on Thursday and closed the day lower by 152 points. After opening with a positive note, the Nifty slipped into minor weakness in the early part of the session. Sharp upside recovery has emerged in the mid part of the session and steep sell off was seen from the day's high in the mid to later part of the session and Nifty finally closed near the lows. The high-low range of this roller-coaster move of the market was around 365 points.

A long bear candle was formed on the daily chart, that has negated the minor upside bounce of the market of previous session. Nifty is now placed at the edge of moving below the crucial support of 22000 mark (lower end of ascending channel and up trend line on the weekly chart).

The positive chart pattern like higher tops and bottoms is intact. As long as Nifty sustains above 21700 levels, the chances of upside bounce from the lows as per this pattern is likely.

Conclusion:

The short-term trend of Nifty remains weak. There is a possibility of some more weakness down to 21800-21700 levels in the coming sessions before showing any upside bounce. Immediate resistance is at 22125.

Nifty – Hourly Timeframe chart

Nifty – Daily Timeframe chart

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