After showing massive upside bounce on Thursday, the Nifty reversed down sharply on Friday and closed the day lower by 204 points. After opening on a positive note, the market made an attempt to move up in the early part of the session. Intraday weakness got triggered from the day's high of 17489 and the weakness got intensified in the afternoon to later part of the session and Nifty closed near the lows.
A long bear candle was formed on the daily chart that has completely engulfed the long bull candle of previous session. The last two sessions candle pattern on the daily chart indicate a formation of 'dark cloud cover' type pattern. Technically, such patterns are formed at the highs and they area considered as a reversal pattern on the downside. Hence, the recent upside bounce of the last few session seems to have completed and the market has turned down from the highs.
After the upside breakout of the initial resistance of around 17300-17350 levels on Thursday, the market was not able to sustain at another resistance of 17500-17550 levels. The negative chart pattern of lower highs and lower lows is intact and Friday's swing high (17489) could be considered as a new lower high of the sequence. Hence, one may expect more weakness in the short term.
Conclusion: The near term trend of Nifty continues to be down and the recent pullback rally of a down trend seems to have completed. There is a possibility of further weakness down to 16800 levels by next week. Immediate resistance is placed at 17300-17350 levels.