The weakness continued for the fourth consecutive sessions in the market on Friday, Nifty closed the day lower by 137 points. Nifty opened on a negative note, made an attempt to move up in the early part of the session. The weakness got intensified in the afternoon and Nifty closed the day with upside recovery note.
A reasonable negative candle was formed with minor upper and lower shadow. Technically this pattern indicate a continuation of weakness amidst a range movement or volatility. the Nifty on the daily chart broken below the immediate support of 10 day EMA at 15085 levels and sustained above the next lower support of 20 day EMA at 14870.
The recent positive sequence like higher tops and bottoms is now placed at the danger of negation, as Nifty moved below the recent higher bottom of 14977 of 10th Feb, made a new swing low of 14898.20 and closed higher. Hence, this could mean that ongoing downward correction could continue in the near term.
Nifty on the weekly chart, formed a reasonable negative candle, which engulfed previous weeks small bull candle. This pattern could hint at a formation of bearish engulfing pattern, but not a classical one. However, this pattern could have further negative implication in the market ahead.
Conclusion: The short term trend of Nifty continues to be weak. The late hour upside recovery of Friday could signal a possibility of a minor upside bounce in the coming session. However, a decisive move below 14950 could result more weakness down to 14700-14500 levels in the near term. Immediate resistance is placed at 15115.