Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities
After showing a sustainable upmove with range bound action on Tuesday, Nifty failed to regain upside momentum on Wednesday and closed the day higher by 35 points amidst range movement. After opening with a positive note, the market failed to sustain the morning gains and started to show intraday weakness from the highs with range bound movement. The narrow range movement continued in the mid to later part of the session and Nifty closed the day off the highs.
A small negative candle was formed on the daily chart with upper and lower shadow. Technically, this market action indicates a formation of high wave type candle pattern. Normally, such patterns after a reasonable upmove signal reversal of the upside, post confirmation. Nifty is still placed at the crucial hurdle of 17200 levels, not showing any attempt of upside breakout of the resistance.
Conclusion: The short term trend of Nifty remains positive. But, the market is not gaining momentum through the hurdle. Unless the immediate resistance of 17200 is taken out decisively on the upside, the chances of sharp upmove could be less. The market is also waiting for the cues from Fed outcome in US on Wednesday. Immediate support is at 17020 levels.