Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities
Nifty continued to show consolidation movement at the highs on Thursday and closed the day lower by 18 points. After opening with a positive note, the market was not able to sustain the opening gains and slipped into weakness soon after the opening. It later moved into a narrow range for better part and closed near the lows.
A small negative candle was formed on the daily chart with minor upper and lower shadow. Technically, this pattern indicates a formation of high wave type candle formation, but not a classical one.
Though Nifty placed at the crucial overhead resistance of 18300 levels, still there is no indication of any strength required for decisive upside breakout. The formations of doji/spinning top or high wave candle patterns back to back at the hurdle signal possibility of reasonable downward correction ahead. However, a decisive move above 18400 levels is likely to change the short term negative sentiment on the positive side. Immediate support is placed at 18150 levels.