Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities on today's market performance.
After showing a narrow range movement with weak bias on Monday, Nifty showed upmove with volatility on Tuesday and closed the day higher by 89 points. After opening with an upside gap of 76 points, Nifty continued with further upmove with range bound action in the early-mid part of the session. Minor intraday selling pressure has emerged from near the hurdle of 19850 levels and Nifty closed the day off the highs.
A small positive candle was formed on the daily chart with upper shadow and with gap up opening. The opening upside gap remains unfilled. The formation of frequent upper shadows on the daily candles near 19850-19875 levels indicates presence of strong overhead resistance.
At the same time, Nifty is not showing any significant reversal pattern at the highs or not showing any sharp weakness from near the hurdle. This is positive indication.
The short-term trend of Nifty continues to be range bound. The present consolidation pattern could eventually result in a decisive upside breakout of the hurdle at 19900 levels from here or from slightly lower levels. The anticipated upside breakout could pull Nifty towards the new all-time highs. Immediate support is at 19650 levels.
