Daily Technical View on Nifty
* Markets surged higher on Wednesday after a gap up opening. The Nifty finally gained 119 points or 0.67% to close at 17,944.25. Broad market indices like BSE Small Cap index gained less, thereby under performing the Sensex/Nifty. Market breadth was positive on the BSE/NSE
Nifty: Short term uptrend still intact
* Zooming into 15 minute chart, we see Nifty opened with an upgap. The index then gradually climbed higher before witnessing some selling pressure towards the closing. In the process, Nifty closed below the 20 period MA on the 15 min chart, which callsfor caution.
* While short term uptrend remains intact, it is matured as 20 period MA on 15 min chart has flattened. Current short term uptrend would reverse with a move below 17597. Downside targetsin thisscenario are at 17442-17359.
Nifty:Daily chart shows index couldrise further
* On Daily chart, we observe that Nifty has broken out of a downward sloping trend line that held down the highs of 2021 and 2022. Technical indicators too are giving positive signals as rising 20 day SMA is above rising 50 day SMA.
* We therefore feel that uptrend is likely to continue. We must however remember that current short term uptrend is matured and could witness a short term correction in near term. This would also be healthy for markets as it would give an opportunity for new positions to be built. Supports to watch for weakness are now at 17764-17597.
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