Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities
After showing sharp upmove on Tuesday, the upside momentum continued on Thursday with volatility and Nifty finally closed the day higher by 57 points. After opening with a positive note, the market made an attempt to move above 17400 levels in the early part of the session. It failed to sustain the highs and later showed intraday consolidation or minor weakness from the highs in the mid to later part of the session.
A small negative candle was formed on the daily chart with an upper shadow. Technically, this pattern indicates a breather type formation post sharp upside bounce from the lower supports of 16800 levels recently. The market is currently facing resistance around 17450-17500 levels as per the concept of change in polarity.
Conclusion: The short-term uptrend of Nifty remains intact and there is a possibility of minor consolidation in the next 1-2 sessions around the hurdle of 17400-17500 levels before showing a decisive upside breakout of the said resistance. Immediate support is placed at 17220 levels.