Technical Analysis

WHAT LIES AHEAD : NEAR-TERM PICTURE 

SPOT NIFTY:The expiry day volatility hit the market in the last hour of the trading session with Nifty index bouncing sharply over 80 points.

In this truncated week, Nifty gained 173 points in the past four trading sessions, including the auspicious Muhurat trading hourOn Thursday, Nifty formed an inside bar as the price traded within the range of the prior trading session. As mentioned earlier, Tuesday's high is crucial immediate resistance for the market direction. As the price action is limited to the previous session, there are no major technical developments that occurred today. The last three days' intraday price action is more or less similar. 

In the last five trading sessions, Nifty failed to protect the opening gains in the four sessions. This shows tiredness in the market. The volume is greater than in the previous session. Nifty is in a neutral zone now. It has to clear the level of 17,812 for a strong bullish bias. In any case, if it fails to do so, Tuesday's low will be the immediate support, which is at the level of 17,637. In a nutshell, the levels of 17,637-17,812 are the crucial support and resistance for the near term, respectively. As the weekend approaches, it may be a Herculean task to clear these levels. Nifty is still above the key moving averages.