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Daily Technical View on Nifty

Market: Observation

* Markets surged higher on Wednesday after a weak morning session. The Nifty finally gained 42.7 points or 0.25% to close at 17,388.15. Broad market indices like the BSE Mid Cap and Small Cap indices ended lower, thereby under performing the Sensex/Nifty. Market breadth was negative on the BSE/NSE.

Nifty: Short term uptrend still intact

* Zooming into 15 minute chart, we see that Nifty opened on a shaky note and drifted lower in the morning session. It however found support near the previous session’s low and bounced back strongly to close nearthe highs ofthe day.

* 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 the trading range of the Nifty has narrowed in the last two sessions after rising strongly for four consecutive sessions.

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

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

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