Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities
The weakness with high volatility continued in Nifty on Wednesday and the market closed the day lower by 82 points amidst broader range movement. After opening with a negative note, the market witnessed sharp intraday selling pressure during its upside recovery attempt. Selling got emerged again towards the end and Nifty closed near the lows.
A long bear candle was formed on the daily chart, that placed at the edge of moving below the support of 18550-18500 levels. This pattern indicates continuation of weakness in the market and lack of strength to sustain the intraday highs.
The positive chart pattern like higher tops and bottoms is still active and we expect Nifty to bounce back from the support 18450 levels. If the lower support gets broken, then the market could test another lower base of around 18150 levels. Immediate resistance is placed at 18650 levels.