Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities
After showing a consistent upmove in the last few sessions, Nifty witnessed an excellent upside recovery from the lows on Wednesday and closed the day lower by 66 points. Nifty opened with a sharp downside gap of 299 points on the backdrop of weak global cues and started with a smart upside recovery from the lows soon after the opening. Minor weakness was seen at the highs towards the end and Nifty closed near the highs. The opening downside gap has been filled completely.
A long bull candle was formed on the daily chart with a minor upper shadow. Technically, this pattern indicates the emergence of sharp buying interest from the lower support. After moving above the important resistance of down sloping trend line at 17900 levels recently, the Nifty witnessed sharp buying from near that trend line support as per the concept of change in polarity. This is a positive indication.
Conclusion: The short-term uptrend status of Nifty is still positive. A sustainable move above the hurdle of 18100 levels could pull Nifty towards the next overhead resistance of 18350 in the short term. Any weakness from here could find support around 17920 levels.