Nifty Trades in Consolidation as Market Struggles to Hold Gains

Nifty continued with consolidation movement on Thursday and closed the day higher by 14 points amidst volatility. After opening on a positive note, the market failed to sustain the upside momentum, as it slipped into weakness from the highs in the early-mid part of the session. There was a minor recovery from the lows towards the end and Nifty closed the day off the lows.

A small negative candle was formed on the daily chart with lower shadow. Technically, this market action signals a lack of strength in the market to sustain the highs. Frequent lower highs have been formed recently and the repeated testing of the crucial lower supports was seen around 25400 levels. This is not a good sign.

The underlying trend of Nifty remains choppy. Crucial lower supports to be watched around 25400-25350 levels on any weakness from here. Immediate resistance is placed at 25600.