Technical View - Feb 18, 2021 - Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

The weakness continued in the market for the second consecutive session on Thursday and Nifty closed the day lower by 89 points. After opening on a slightly positive note, the market made an attempt to sustain the highs in the early part of the session. The intraday weakness started from a early part and Nifty shifted into a weakness amidst a range movement for the better part of the session.

A reasonable negative candle was formed, which is back to back for the second session. This action reflects a profit booking in the market but, Nifty so far not shown any violent decline at the highs, after a rise of more than thousand points, post budget.

The overall market breadth was positive despite decline in Nifty and broad market indices like mid cap and small cap of NSE have closed higher by 0.47% and 0.96% respectively. This is positive indication and signal lack of inherent strength in current market declines.

The minor positive sequence of higher highs and lows is intact until Nifty sustains above 14977 levels. Nifty is currently placed at the immediate support of 10 period EMA at 15085.

Conclusion: The short term trend of Nifty is down amidst a range movement. Lack of strength in decline and positive market breadth could indicate possibility of a comeback of bulls from the lower levels. We expect Nifty to show upside bounce from the lows of around 15000 levels in the next 1-2 sessions. On the flip side, a decisive move below 14950 is likely to trigger more weakness in the near term.

Source : Equity Bulls

Keywords