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Daily Technical View on Nifty

Range bound movement..

Observation:

After showing intraday weakness from the highs on Wednesday, Nifty shifted into a consolidation with narrow range movement on Thursday and closed the day higher by 16 points.

After opening with a positive note, the market made an attempt to move up in the early part of the session. It later shifted into a gradual weakness amidst a range movement that lasted till the end.

A small negative candle was formed on the daily chart with minor upper shadow. Technically, this pattern indicates range bound action around 25150-24950 levels. The formation of long upper shadows indicates emergence of weakness from near the hurdles.

The double bottom formation in Nifty around 24700 still not confirmed as the market is not sustaining with follow-through upside bounces.

Any decline below the recent swing low of 24700 levels could confirm bearish lower top formation at 25230 for short-term and that could change the underlying trend to negative.

However, if Nifty manages to sustain above the resistance of 25250-25300 levels in the next 1-2 sessions, then fresh round of up move could resume and that could possibly pull Nifty towards next hurdle of 25500-25600 levels in the near term.

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