Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities
After witnessing a sharp intraday weakness from the all time highs of 20100 levels on Tuesday, Nifty showed a sustainable upside bounce on Wednesday and closed the day higher by 76 points. After opening with a weak note, the market has shifted into a steady upmove in the early to mid part of the session. Minor selling has occurred towards the end from near all time high of 20100 levels and Nifty closed the day near the highs.
A reasonable positive candle was formed on the daily chart, that placed beside the negative candle of Tuesday. Technically this market action indicates that bulls are still not out of the game. Though, selling pressure is emerging from near 20100 levels, there is no confirmation of any top reversal pattern forming at the new highs. But, a decisive upmove above 20100-20150 levels is expected to bring more upside towards 20350-20450 levels in the near term. Immediate support is placed at 19950 levels.