Technical Quote: Nagaraj Shetti, Technical Research Analyst, HDFC Securities

There is a possibility of an upside bounce from near the lower support of 17350-17300 levels in the short term. Immediate resistance is placed at 17650 levels.

After showing a sharp upmove on Tuesday, Nifty slipped in to weakness on the back drop of weak global cues on Thursday and closed the day lower by 216 points. After opening with a negative note, the market made an attempt of intraday upside recovery in the early-mid part of the session. The upside recovery attempt has failed to sustain in the mid to later part of the session and the market closed near the lows.
A small positive candle was formed on the daily chart with long upper shadow. The Thursday's small candle pattern was formed beside the long bull candle of Tuesday. Technically, the market is placed at the broader high low range of 17350-17750 levels and consolidation movement with volatility is likely in the coming sessions.
After reacting down from the important trend line resistance at 17900 levels in the last month, the Nifty made another attempt towards the hurdle of trend line around 17800 levels on Tuesday before witnessing another round of selling pressure from the highs on Tuesday.
 

Conclusion:The short term trend remains range bound with high volatility. There is a possibility of an upside bounce from near the lower support of 17350-17300 levels in the short term. Immediate resistance is placed at 17650 levels.