Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities
After showing a sharp upside bounce from the lows on Friday, Nifty witnessed reversal on the downside on Friday and closed the day lower by 207 points. After opening with a flat note, the market failed to sustain the opening ground and started with weakness from early part. Intraday upside bounce of mid part has eventually resulted in a sell on rise opportunity and Nifty closed near the lows.
A long bear candle was formed on the daily chart, that has engulfed more than half way mark of previous long bull candle of Friday. Technically, this pattern indicates a lack of strength to sustain the upside bounce in the market and the crucial lower support of 16750-16800 levels could be tested again. This is negative indication. Hence, a decisive slide below 17750 levels is likely to negate the bullish pattern created on Friday's upmove and that could eventually result in further strengthening of downside momentum in the market.
Conclusion:The short term trend of Nifty remains weak. Any sustainable move below 16750 levels could bring sharp negative momentum on the cards. On the upside, 17060-17100 could act as a strong hurdle for the short term. The next important support is placed at 16750 levels.