Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities
After moving into a narrow high low range on Tuesday, Nifty continued with choppy movement with positive bias on Wednesday and closed the day higher by 47 points. After opening with a positive note, the market slipped into minor weakness in the early part of session. A sustainable buying has emerged from the day's low and the upside continued with range bound action in the mid part of Wednesday.
A small body of positive candle was formed on the daily chart with minor upper and lower shadow. Technically, this pattern signal a formation of doji or high wave type candle pattern at the highs, but not a classical one.
Nifty is currently placed at the crucial resistance of down sloping trend line around 19450-19500 levels and is struggling to break decisively above the hurdle. At the same time, the market is not willing to show any reasonable weakness from near the resistance. This market action suggests chances of one more attempt of upside breakout around 19500 levels in the short term and any failure to sustain the anticipated upside breakout could open selling pressure from the highs. Immediate support is placed at 19360 levels.