Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities
The upside momentum continued in the market on Tuesday and Nifty registered all time highs of 18678 levels amidst range bound movement. After opening with a positive note, the market moved up further in the early to mid part of the session. It later shifted into a consolidation in the mid to later part of the session.
A small positive candle was formed at the highs on daily chart with upper shadow. Technically this pattern indicates consolidation movement in the market at the new highs. The overall market breadth was weak on Tuesday signaling lack of participation from broad market participants.
The positive chart pattern like higher tops and bottoms is intact as per daily chart and the market is now in line with the formation of new higher top of the sequence. Though, tiredness is visible in the market, but there is no confirmation of any reversal pattern unfolding at the new highs. Immediate support is placed at 18500 and the next overhead resistance to be watched around 18950.