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08-09-2023 09:47 AM | Source: HDFC Securities Ltd
Markets corrected on Tuesday after two sessions of gains - HDFC Securities
News By Tags | #2730 #2034 #879 #1014 #59

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Daily Technical View on Nifty

Market: Observation

• Markets corrected on Tuesday after two sessions of gains. Nifty finally lost 26.45 points or 0.13% to close at 19,570.85. Broad market indices like the BSE Mid Cap and Small Cap indices ended higher, thereby out performing the Sensex/Nifty. Market breadth was negative on the BSE/NSE

Nifty: Nifty now stuck in a narrow range

• Zooming into 15 min chart, we observe that Nifty opened on a positive note, but gradually came lower during the day to end in the red.

• Nifty is now stuck in a trading range. Further directional cues are likely to emerge on a move beyond the 19524-19634 trading range.

 

Nifty: Likely to head higher

• On the daily chart, we can observe that Nifty has recently broken its support of 19563 and also closed below the 20 day SMA. The Nifty however managed to hold above the crucial support of 19300 and bounced back on Friday and Monday to close just below the 20 day SMA. Momentum readings like the 14-day RSI too have bounced back, which is encouraging.

• With the intra day charts showing range bound price action, we expect a breakout of this range soon that could take the Nifty back towards its 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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