Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities
The choppy movement continued in the market on Wednesday and Nifty closed the day lower by 31 points amidst narrow intraday range movement. After opening with a negative note, the market shifted into a sustainable upside recovery in the early-mid part of the session. It later moved into a range for rest of the session.
A long bull candle was formed on the daily chart after opening lower. Technically, this pattern indicates sideways movement in the market around 17750-17400 levels. Today's upside recovery after a weak opening signal an emergence of buying interest from the lows. This is positive indication for the market ahead.
Recently, three gap down openings have happened on 23rd and 28th Aug and 7th Sept and in all the occasions follow-through upmove was seen in the short term post such market behavior. Hence, Nifty cant be ruled out of another attempt towards the hurdle of 17800 levels in the coming sessions.
Nifty on the weekly chart placed just below the crucial overhead resistance of significant down trend line around 17800 levels. The repeated hitting of the said hurdle was seen in the last few weeks. This indicates strength of underlying Nifty at the highs.
Conclusion:The short term trend of Nifty continues to be range bound at 17750-17400 levels. Having moved up from near the lower range on Wednesday, there is a possibility of Nifty making an attempt towards upper range and also crucial TL resistance around 17800 levels in the coming sessions.