Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities on today's market performance.
After showing higher levels weakness in the last couple of sessions, Nifty shifted into a narrow range movement with weak bias on Monday and closed the day lower by 37 points. After opening with a flat note, the market slipped into minor intraday weakness soon after the opening. An attempt of upside recovery from the lows has failed and Nifty finally 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 range bound action in the market with weak bias.
Minor degree of higher tops and bottoms is observed in Nifty as per daily timeframe chart. The recent swing high of 19875 could be considered as a new higher top of the sequence. Any dip from here is expected to be a higher bottom of the sequence.
Conclusion: The short-term trend of Nifty continues to be range bound. There is a possibility of some more consolidation or minor weakness in the short term before showing upside bounce from the lows. Immediate support is placed around 19600-19550 levels.