The consolidation movement continued in the market for the second consecutive session on Thursday and Nifty closed the day lower by 9 points. After opening with a weak note, the market made an attempt to move up in the early part of the session. It later shifted into a narrow range movement with minor intraday volatility.
A small body candle was formed on the daily chart with minor upper and lower shadow. Technically, this pattern indicates a formation of doji type candle pattern. Normally, such doji at the highs or lows could be considered as an impending warning signal for trend reversal. But, having formed this pattern at the range movement, the predictive value of this pattern could be less.
Nifty is now placed at the crucial overhead resistance of around 17250-17300 levels (down sloping trend line), which is likely to be a new lower top formation (with swing high of 17285 of 29 Dec). But, the market is not showing any sharp weakness from near the key hurdle. Hence, such consolidation movements just below the important resistances more often results in a decisive upside breakout of the hurdle.
Conclusion: The short term trend of Nifty remains choppy. The lack of selling participation at the crucial overhead resistance could give chance for bulls to make a sharp come back from the lows in the near term. Hence, the said consolidation movement could continue for the short term. Immediate support is placed at 17120 levels.