Nifty Slides Further as High‑Wave Candle Forms Near Key Supports

Authored By HDFC SKY | Published at: Mar 12, 2026 04:42 PM IST

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The downside momentum continued in the market on Thursday and Nifty closed the day lower by 227 points amidst volatility. After opening with a downside gap of 190 points, the market recovered smartly in the early-midpart of the session and filled the opening down gap completely. But, the market was failed to sustain the highs and slipped into sharp weakness towards the mid to later part of the session.

A small negative candle was formed on the daily chart with upper and lower shadow. Technically this market action signals a formation of high wave type candle pattern at the swing lows.

The current market action reflects volatility at the lower supports. Sometime, such high wave pattern formations after a down trend or at the supports signal possible bottom reversal after the confirmation. Positive divergence pattern has also started to form in Nifty/daily RSI.

The underlying trend of Nifty remains weak. But the overall chart pattern indicates a possibility of lower bottom formation around the supports of 23500-23400 in the short term. A sustainable move above the hurdle of 23850 could confirm reversal on the upside.

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The information shared here is intended solely for informational and educational purposes and does not constitute investment recommendations. While we practice strict due diligence in curating daily market data, readers must perform independent research before trading. To flag any real-time data discrepancies or content concerns, please write to us at content@hdfcsec.com.

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