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Daily Technical View on Nifty

* Last week, on Friday Nifty broke six session’s winning streak by falling 1.17% to close at 17945. For the week, Nifty was up 0.92% and it was the fourth consecutive week of rise for Nifty. PSU Bank Index, BankNifty, Media, Pharma remained the biggest gainers from the sectors while IT, Realty and Metal remained the losers from the sectors. Nifty Smallcap index continued to outperform the Nifty by clocking 1.82% gain last week.

* During last week, Nifty found resistance near 20000 and reversed south on the back of steep cut in the IT index. Nifty closed below its 5 days EMA for the first time after 7 th July 2023. However, Nifty is still holding above 10,20 and 50 day EMAs, which indicates the bullish trend on all time frames.

* Immediate support for the Nifty is seen at the previous resistance level of 19500, while positional support for the Nifty is seen at 19100, which happens to be the level derived from upward sloping trend line, adjoining major swing tops of October 2021(18604) and December 2022 top(18887).

* Positional Trend of the Nifty would remain bullish till it remains above 19100. There could be extension of the correction which started on last Friday, but considering the overall trend, support levels should be utilized to go long with 19100 stoploss on closing basis.

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