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Daily Technical View on Nifty

Placed near the lower range..

Observation:

The weakness with range bound action continued in the market on Wednesday and Nifty closed the day lower by 86 points.

After opening with a negative note, Nifty made an attempt to bounce back from the lower levels in the early part of the session.

Selling pressure has emerged at the intraday highs in the early and in mid part of the session and Nifty finally closed near the lows.

A small negative candle was formed on the daily chart with minor upper shadow. Technically this pattern reflects ongoing range bound action in the market and the Nifty is currently placed near the lower range around 24900 levels.

After sustaining above the daily 10 and 20 period EMA in the last couple of months, the moving average supports have been broken on the downside recently.

Presently, the said moving average (10 & 20 period EMA) are acting as a hurdle around 25150-25200 as per the concept of change in polarity.

Conclusion:

The underlying trend of Nifty continues to be choppy with weak bias. A sustainable move only above 25200 and a sharp weakness below 24800- 24700 could bring strong momentum in the market on either side.

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