Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities
After showing a fine upmove in the last couple of sessions, Nifty slipped into weakness amidst consolidation movement on Thursday and closed the day lower by 57 points. Nifty opened on a negative note and slipped into further weakness in the early part of the session. It showed upside recovery from the days low of 18063 levels in the early-mid part, but was not able to gain the upside momentum and shifted later into a range movement with weak bias.
A small negative candle was formed on the daily chart with minor upper and lower shadow. Technically, this pattern indicates consolidation movement or minor weakness in the market before showing further upside from the lows.
The upside breakout of triangle pattern is still intact until Nifty closes below 18K mark. At the same time, a sustainable move above 18250 levels is likely to bring bulls into action. Nifty on the weekly chart is placed between broader high low range of 18200-17800 levels.
Conclusion: The market has shifted into a consolidation after an upside bounce and there is a possibility of further range movement or minor weakness in the next 1-2 sessions before showing upside bounce from the lows. Immediate support is placed at 18000-17950 levels.