IGI Logo

Daily Technical View on Nifty

Market: Observation

* Markets bounced back smartly on Thursday after a weak morning session. The Nifty finally gained 35.75 points or 0.2% to close at 18,321.15. Broad market indices like the BSE Mid Cap index gained more, thereby out performing the Sensex/Nifty. Market breadth was positive on the BSE/NSE.

Nifty: Short term trend remains UP as Bulls are back

* Zooming into 60 min chart, we observe that while the Nifty broke the 18250 supports in the morning session, it held on to the 61.8% retracement of the recent upmove which comes to 18197.

* Thursday’s low was 18202 and the strong recovery that followed in the late afternoon session helped to push the Nifty into positive territory. Further upsides are likely once immediate resistance of 18344 is taken out.

Nifty: Uptrend to continue

* On Daily chart, we observe that Nifty did move below the 20 day SMA on Thursday. But it recovered and closed well above it, indicating the bulls remain in control after two sessions of weakness. We therefore expect the uptrend to continue in the coming sessions.

* Immediate upside targets for Nifty are at 18459 once resistances of 18393-18420 are 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 sessions.

To Read Complete Report & Disclaimer Click Here

Please refer disclaimer at https://www.hdfcsec.com/article/disclaimer-1795

SEBI Registration number is INZ000171337

Views express by all participants are for information & academic purpose only. Kindly read disclaimer before referring below views. Click Here For Disclaimer