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Daily Technical View on Nifty

Lack of strength to hold on the upside bounce..

Observation: After showing an upside bounce from the day's low on Friday, Nifty was not able to continue with upside momentum on Monday. It slipped into decline and closed the day lower by 72 points.

After opening with an upside gap of 100 points, Nifty started to show weakness soon after the opening. It later shifted into a broader range movement with weak bias for better part of session and finally closed near the lows.

A small reasonable candle was formed on the daily chart with minor lower shadow. Technically this pattern indicates lack of strength in the market to show a sustainable upside bounce. This is not a good sign. The market is still in a broader high low range in the last few weeks. At the highs 25200-25100 is acting as a strong overhead resistance and the lower area of 24600-24500 is offering a support for the market as of now.

Conclusion: The underlying trend of Nifty remains weak amidst range movement. Having failed to sustain the recent upside bounce, the market could revisit lower range of 24600-24500 levels in the near term. Immediate resistance is at 25000 levels.

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