Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities
After showing a higher-level weakness from near 19850 levels on Tuesday, Nifty showed upside recovery from the intraday lows and closed the day higher by 28 points. After opening with a flat note, the market made an attempt to move up in the early part of the session. Selling pressure has emerged again from the day's high of 19825 levels in the mid part and the market showed smart upside recovery from the days low in the later part of the session.
A small positive candle was formed on the daily chart with long lower shadow. Technically, this pattern indicates a formation of hanging man type formation, which is a bearish reversal pattern. But, having formed this pattern amidst a range movement, the predictive value could be less.
The short- term trend of Nifty remains range bound with positive bias. A decisive move above 19850-19900 levels is expected to open sharp upside towards new all-time highs. Any weakness from here could find support around 19650 levels.