Mr. Nagaraj Shetti, Technical Research Analyst, HDFC Securities
Choppy movement with high volatility continued in the Nifty for the second consecutive sessions on Monday and the market closed the day modestly higher by 56 points. After opening on a positive note, the market showed broader range movement within a high low range of 15382-15191 levels for the better part of the session. A sustainable intraday upside bounce has occurred towards the end and Nifty closed near the highs.
A small body of positive candle was formed on the daily chart with minor upper and long lower shadow. Technically, this formation indicate a doji type candle pattern, but not a classical one. But the formation of high wave and doji patterns back to back in the two sessions around the lows of 15200 levels signal chances of an upside bounce in the market.
The negative sequence of lower tops and bottoms is intact as per daily timeframe chart and current consolidation indicate an attempt of lower high formation. Hence, any attempt of lack of strength around 15500 levels could possibly bring bears into action.
Conclusion: The short term trend of Nifty continues to be volatile with broader range movement. A decisive move above 15500 levels could open an upside bounce in the market. Important support to be watched around 15200 levels.