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Daily Technical View on Nifty

Market: Observation

* Markets ended lower on Thursday after a weak opening. A bounce back from the lows helped to curb the losses. Nifty finally lost 89.45 points or 0.46% to close at 19,543.1. Broad market indices like the BSE Mid Cap and Small Cap indices lost less, thereby out performing the Sensex/Nifty. Market breadth was negative on the BSE/NSE

Nifty: Stuck in a range

* Zooming into 15 min chart, we observe that Nifty bounced back from a low of 19495 and still remains in a range between the 19467-19645 levels.

Nifty: Needs to breakout to move higher

* On the daily chart, we can observe that Nifty has recently managed to hold above the crucial support of 19300 and bounced back late last week and then traded in a range this week with the 20 day SMA acting as a resistance.

* A close above the 19467-19645 range and also the 20 day SMA would give the bulls an upper hand. In this scenario, the Nifty could then head higher towardsthe life highs.

* Our bullish bets would be off if the Nifty breaks down from its current trading range, in which scenario Nifty could head towards the 19300 supports once again.

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