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Daily Technical View on Nifty

Observation: After showing upmove with range bound action on Tuesday, Nifty slipped into a sharp weakness on Wednesday and closed the day lower by 140 points. After opening with a flat to positive note, the market made an attempt to show upside recovery in the early part of the session. Sharp intraday weakness has triggered from the highs of 19840 levels and the downside momentum got intensified in the later part of the session.

A long bear candle was formed on the daily chart, which is indicating a double top type pattern at 19840 levels as per daily chart. Nifty is placed within a broader high low range of 19840-19635 levels and is now placed at the edge of downside breakout of the lower range.

The bullish positive chart pattern like higher tops and bottoms could be negated once Nifty slide below 19630 levels in the short term. The daily 10 and 20 day EMA has been broken marginally on the downside around 19700 levels.

Conclusion: The short term trend of Nifty seems to have reversed down, after showing a range bound action. Further weakness from here is likely to drag Nifty down to 19400-19350 levels in the near term. Immediate resistance is placed at 19750 levels.

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