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Nifty formed a negative candle – Nagaraj

by Mr. Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities
🕗 Last Updated:  16 August 2026, 7.00 AM

Technical Analysis of the Market by Nagaraj ShettiNifty Outlook: Consolidation May Continue

The stock market remained range-bound on Friday, with the Nifty closing 29 points lower. The overall technical chart indicates that the index has been gradually losing momentum over the past nine trading sessions.

What Does the Nifty Weekly Chart Indicate?

Nifty formed a reasonably negative candle on the weekly chart after creating a Doji-type pattern near the recent highs in the previous week. This formation indicates uncertainty at higher levels and suggests that the attempted breakout above the crucial 24,500–24,600 resistance zone may have failed.

The false upside breakout has increased the possibility of further consolidation or short-term weakness.

Is the Broader Nifty Trend Still Positive?

Nifty has consistently formed higher bottoms over the past few months, indicating that the broader market structure remains constructive. The ongoing correction may therefore be part of another higher-bottom formation rather than the beginning of a major bearish trend.

However, confirmation will depend on whether the index finds support near its lower technical levels.

What Are the Important Nifty Support and Resistance Levels?

Technical Level Nifty Zone Significance
Immediate resistance 24,500 Nifty must cross this level to regain momentum
Crucial resistance zone 24,500–24,600 Recent breakout attempt failed here
First support 24,200 Initial downside support
Strong support 24,000 Important near-term support and higher-bottom zone

What Is the Near-Term Nifty Prediction?

Further consolidation is likely over the coming sessions. If selling pressure increases, Nifty could decline towards 24,200 and subsequently test the stronger support near 24,000.

On the upside, 24,500 remains the immediate resistance. A sustained move above 24,500–24,600 would be required to invalidate the current weakness and revive bullish momentum.

Trading Strategy for Nifty

Traders should remain cautious while Nifty trades below 24,500. A break below 24,200 could extend the correction towards 24,000. Fresh bullish positions may be considered only after the index sustains above the 24,500–24,600 resistance zone.

Overall, the near-term Nifty outlook remains range-bound with a mildly negative bias, although the broader higher-bottom structure has not yet been decisively damaged.

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Stock recommendations by Nagaraj Shetti

Who is Nagaraj Shetti?

Stock Recommendations by Nagaraj Shetti (HDFC Securities)
Senior Technical Analyst Nagaraj Shetti has identified a select group of stocks showing strong chart setups and momentum for short-term traders.
According to him, the near-term market structure remains supportive for selective long positions, especially in scrips showing breakouts above key resistance levels and higher-high formations on the daily chart.
Shetti recommends traders focus on stocks with rising volumes and bullish crossover patterns on the short- and medium-term moving averages.
He advises maintaining strict stop-loss levels and booking partial profits near resistance bands.
These recommendations are part of his latest weekly outlook published in Chanakya Ni Pothi, providing guidance on potential outperformers for the coming sessions.