Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities
After showing a reasonable upside bounce on Wednesday, Nifty shifted into a narrow range movement with positive bias on Thursday and closed the day higher by 33 points. After opening with an upside gap of 57 points, the market was not able to sustain the opening gains and slipped into intraday decline in the early part of the session. Minor upside recovery was seen from the lows towards the end and the opening upside gap has been filled completely. New all time was registered at 20167 levels.
A small negative candle was formed on the daily chart with minor upper and lower shadow. Technically, this market action hints at a formation of spinning top type candle pattern at the new highs. However, having placed this candle pattern within a narrow range of 20150-19950 levels, the chances of further consolidation movement is likely in the short term.
After moving into new all time highs above 19990 levels, the market seems to have struggled to move decisively into new all time highs over the last few sessions. Hence, any decline from here could drag Nifty towards the immediate support of around 19950 levels. A decisive upmove above 20200 levels is expected to pull Nifty towards another hurdle of 20450 levels.