Technical View - May 12, 2021 - Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

After showing a fine intraday upside recovery from the lows on Tuesday, Nifty continued with selling momentum on Wednesday amidst a volatility and closed the day lower by 154 points. Nifty opened on a negative note, slipped into weakness in the early to mid part of the session. The intraday upside recovery of mid part has failed to sustain and the weakness got intensified in the later part of the session. Nifty finally closed lower with minor upside recovery note.

A reasonable negative candle was formed on Wednesday with minor lower shadow. Technically, this pattern indicates a follow-through weakness in the market. The optimism created after the Tuesday upside recovery has been negated on Wednesday and Nifty closed below the low of previous candle at 14771.

The higher bottom status of the market is still alive, until the Nifty sustains above 14416 levels. As long as this area is protected in the coming sessions, there is a chances of Nifty showing upside bounce from the lows is higher.

The inability to move above the recent swing high of 15044 (29th April) recently and the failure of upside range breakout (on 10th May) could bring some more weakness in the market in short term. After showing resilience in the previous session, the broad market indices have given their intraday gains and slipped into minor weakness on Wednesday.

Conclusion: The short term trend of Nifty seems to have reversed down within a broader range movement. There is a possibility of some more weakness in the coming sessions and we expect the recent swing low of 14416 could be protected and the market could bounce from the lows in short term. Immediate support is placed at 14620.

Source : Equity Bulls

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