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Daily Technical View on Nifty

Market: Observation

* Markets ended marginally higher on Wednesday after recovering from the lows. The Nifty finally gained 9.65 points or 0.06% to close at 17,534.75. Broad market indices like the BSE Mid Cap and Small Cap indices lost more, 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 Nifty opened on a shaky note, but soon recovered and traded in a range forthe rest ofthe session.

* 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 17348. Downside targets in thisscenario are at 17161-17061.

Nifty:Daily chart shows index couldrise further

* On Daily chart, we can observe that Nifty has broken out of a 5-day range on Monday. Technical indicators too are giving positive signals as the 20 day SMA is above the 50 day SMA and both these MAs are rising.

* We therefore feel that the uptrend is likely to continue. The index is however approaching a strong downward sloping trend line around the 17850 levels which could act as a resistance and halt the current uptrend, at least temporarily. Immediate supports to watch for weakness are at 17348-17215.

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