IGI Logo

Daily Technical View on Nifty

Market: Observation

* Markets ended with marginal gains on Tuesday. The Nifty finally gained 5.4 points or 0.03% to close at 17,345.45. Broad market indices like the BSE Mid Cap and Small Cap indices gained more, thereby out performing the Sensex/Nifty. Market breadth was positive on the BSE/NSE.

Nifty: Short term uptrend now matured

* Zooming into 15 minute chart, we see that Nifty opened lower and after a weak morning session, recovered well to surpass Monday’s highs. Selling pressure towards the closing however led to a marginally positiveclosing.

* While the short term uptrend remains intact, it is now matured as the 20 period and 50 period MA on the 15 min chart have flattened.

* The current short term uptrend would reverse with a move below 17215. Downside targets in thisscenario are at 17061.

Nifty:Daily chart shows index couldsoon consolidate

* On Daily chart, we can observe that Nifty has taken a breather today after rising strongly for four consecutive sessions. The 14-day RSI at 73.48 too has eased a bit.

* We therefore feel that while the uptrend islikely to continue, the index could witness a minor correction or consolidate in a range before resuming the uptrend.

* Immediate supports to watch for weakness are at 17215-17154.

To Read Complete Report & Disclaimer Click Here

Please refer disclaimer at https://www.hdfcsec.com/article/disclaimer-1795

SEBI Registration number is INZ000171337

Views express by all participants are for information & academic purpose only. Kindly read disclaimer before referring below views. Click Here For Disclaimer