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Daily Technical View on Nifty

Market: Observation

* Carrying on from last Friday, markets surged higher on Monday to close with healthy gains. Nifty finally gained 111 points or 0.61% to close at 18,314.4. It was the second consecutive session of gains for the Nifty. Broad market indices like the BSE Mid Cap index gained more, thereby out performing the Sensex/Nifty. Market breadth was negative on the BSE/NSE.

Nifty: Short term trend has turned UP

* Zooming into 15 min chart, we observe that Nifty has reversed its recent short term downtrend. The reversal was confirmed when the Nifty took out the previous swing high of 18186 last Friday.

* Further upsides are now likely once the immediate resistance of 18335 is taken out. Crucial supports are now at 18178.

Nifty:Bounces from 20 day SMA; uptrend to continue

* On Daily chart, we observe that Nifty found support near the 20 day SMA and has bounced back in the last two sessions. This indicates that the uptrend looksset to continue.

* Immediate upside targets for the Nifty are at 18459 once the immediate resistance of 18335 is taken out.

* Moreover, as the longer time frame indicates that the Nifty remains in an uptrend, we believe that our immediate targets of 18459 are also likely to be taken out in the coming weeks.

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