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Daily Technical View on Nifty

Market: Observation

* Markets bounced back smartly on Tuesday after two sessions of losses. The Nifty finally gained 86.8 points or 0.5% to close at 17,577.5. 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 down trend reverses

* Zooming into 15 minute chart, we see Nifty initially opened on a negative note, but soon bounced back and rose through the day.

* The index has in the process crossed its recent swing high of 17589 and reversed its short term downtrend.

* There has also been a positive MA crossover on the 3 min chart as the 20 period MA has moved above the 50 periodMA.

Nifty:Daily chart shows index couldrise further

* On Daily chart, we observe that Nifty has found support near the 20 day SMA and bounced back on Wednesday.

* The Nifty could now attempt to move higher and break out of the downward sloping trend line that has held down the major highs of 2021 and 2022. Our bullish view would turn wrong if the Nifty moves lower and fails to hold above the 20 day SMA, currently at 17383.

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