Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities
After showing minor upside bounce with range bound action in the last couple of sessions, Nifty showed lack of strength to sustain the gains on Wednesday and closed the day higher by 04 points. After opening with an upside gap of 91 points, the market shifted into a range bound action for better part of the session. Sharp intraday weakness triggered in the later part of the session and the market closed the day off the highs.
A long negative candle was formed on the daily. Technically, this pattern indicates bearish counter attack type candle pattern after a small bounce. The negative chart pattern like lower tops and bottoms is intact on the daily chart and Wednesday's high of 19452 could now be considered as a new lower top of the sequence. Hence, one may expect further weakness in the short term.
The short term trend of Nifty remains choppy. The lack of strength to sustain the upside bounce on Wednesday could possibly drag Nifty down to its immediate supports of 19250-19200 levels in the short term. On the upper side, the area of 19450 is likely to be a strong resistance.