Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities
The range bound movement with volatility continued in the market on Tuesday and Nifty closed the day lower by 10 points. After opening with a positive note, the market failed to sustain the morning gains for long period. Sharp intraday weakness got triggered from the high of 17764 in the early-mid part of the session, but the market was managed to show upside recovery from the lows.
A small negative candle was formed on the daily chart with minor upper and lower shadow. Technically, this pattern indicates a high wave type formation. But having placed this pattern within a narrow range, the predictive value of this pattern could be less. Hence, this could be considered as a range bound action for the market over the last few sessions.
Nifty is currently placed at the crucial overhead resistance of 17800 levels and a decisive breakout of this area could pull Nifty back into upside momentum. Any weakness from here could find important support around 17450-17400 levels.