Technical Quote: Nagaraj Shetti, Technical Research Analyst, HDFC Securities

Long term charts like weekly and monthly are still positive and one may expect any downward correction to be a buy on dips opportunity.

After showing choppy movement with negative bias on Friday, Nifty continued with range movement on Monday and closed the day higher by 126 points. After opening with a positive note, the market extended gains in the early to mid part of the session. Minor intraday dips have been bought into and Nifty closed near the highs.

A reasonable positive candle was formed on the daily chart, which is placed beside the negative candle of Friday. Technically, this pattern indicates a range bound action for the market with positive bias. Presently, Nifty is stuck within a high low range of 17800 on the upside and 17300 levels on the downside.

A sustainable buying could only emerge on the move above 17800 levels and the slide below the immediate support of 17300 could pull Nifty down to the next support of 17000 levels for the near term. However, the long term charts like weekly and monthly are still positive and one may expect any downward correction to be a buy on dips opportunity.