Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities
After showing a sustainable upmove on Monday, the upside momentum with range bound action was seen in the market on Tuesday and Nifty closed the day higher by 52 points amidst a consolidation. After opening on a flat note, Nifty slipped into minor weakness in the early part of the session. The upside recovery has emerged in the early-mid part and the market continued with gradual upside for better part of the session. Minor volatility with range bound action was observed in the mid part at the highs.
A reasonable long candle was formed on the daily chart, which indicate a range bound action in the market with positive bias. The near term trend of Nifty remains intact and the positive chart pattern of higher highs and higher lows is active on the daily chart.
Currently, the Nifty is nearing an important hurdle of around 18100-18200 levels and the muted movement in the index is likely till the hurdle is taken out on the upside. As per the current chart setup, any decline from here could be a buying opportunity. We are unlikely to see any sharp downward correction from here; at least for short term.
Conclusion:The upside with range bound action in the market is likely to continue. Having placed at the crucial overhead resistance of around 18200 levels, there is a possibility of further volatility and range movement for the next 1-2 sessions. Eventually, the market could break above the said resistance in the near term. Immediate support is placed at 17950 levels.