Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities
The choppy movement continued in the market on Friday, post display of high volatility of Thursday and Nifty closed the day higher by 15 points. After opening with a positive note, the market made an attempt to move up in the early-mid part of the session. After the outcome of RBI's mid-quarter policy meet around 10am and the repo rate hike by central bank has not damaged the sentiment of the market, as the Nifty later shifted into range-bound action with weak bias.
A small negative candle was formed on the daily chart with minor upper and lower shadow, which indicates a range bound action in the market. Technically, this pattern signal high wave type formation and such pattern at range movements shows less predictive value.
Nifty on the weekly chart formed a small positive candle with minor upper and lower shadow. This candle pattern indicate slowdown in the upside momentum, after a sharp upmove of the last two weeks. This could also be considered as a breather pattern before showing further upside momentum in the market.
Conclusion: The short term trend of Nifty continues to be choppy with high volatility. As long as Nifty stays below the hurdle of 17500 levels, there is a possibility of muted movement in the market. A sustainable move above 17500 could open the next upside targets of 17800-17900 levels in the near term. Immediate support is placed at 17200 levels.