Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities
Nifty continued to show consolidation movement on Thursday and witnessed smart intraday upside recovery from the lows to close the day higher by 12 points. After opening with a negative note, the market showed high volatility in the early to mid part of the session. Intraday weakness of mid part has reversed and the market shifted into an upside bounce in the second half of the day.
A reasonable positive candle was formed on the daily chart, that paced beside the long bull candle of previous session. Technically, this pattern indicate a sideways range movement in the market at the highs.
After the upside breakout of the crucial overhead resistance of down trend line (down trend line connected from the important lower tops) around 17900 levels on Wednesday, the Nifty consolidated above the hurdle on Thursday, which has converted as a support as per change in polarity. Though, absence of sharp follow through upmove post upside breakout of the hurdle is missing, but the overall uptrend remains intact.
Conclusion: The market continued with upside momentum for the 8th consecutive sessions on Thursday and placed at the high. A sustainable move above 17900-18000 levels in the short term is expected to open next upside target of 18500-18600 levels in the coming week. Crucial supports to be watched at 17760 levels.