Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities
After showing a sharp upside bounce from the intraday lows on Wednesday, Nifty slipped into weakness amidst volatility on Friday and closed the day lower by 126 points. After opening with a positive note, the market failed to sustain the gains at the hurdle of 18100 levels and shifted into weakness in the early-mid part of the session. Intraday volatility was seen on the day of weekly f&o expiry and the market closed near the lows.
A long negative candle was formed on the daily chart, that has engulfed the long bull candle of Wednesday on the downside. Technically, this market action signal emergence of selling pressure at the resistance of 18100 levels. On the downside, the Nifty is expected to find support around 17750-17700 levels in the short term.
Conclusion: The short-term trend of Nifty continues to be range bound around 18100-17700 levels. There is a possibility of further consolidation or minor downward correction in the short term.