IGI Logo

Daily Technical View on Nifty

Market: Observation

Markets ended with marginal gains on Wednesday after a weak opening. A strong bounce back from the lows erased the morning losses and ensured the Nifty ended in the green. Nifty finally gained 30.45 points or 0.16% to close at 19,465.0. Broad market indices like the BSE Mid Cap and Small Cap indices gained more, thereby out performing the Sensex/Nifty. Market breadth was positive on the BSE/NSE.

Nifty: Short term downtrend has reversed

Zooming into 15 min chart, we observe that Nifty has reversed the recent short term downtrend. The downtrend was reversed when the previous swing high of 19466 was taken out on Wednesday. There was also a positive MA crossover (20 period MA above 50 period MA). Nifty could now test the next resistances at 19558-19628 in the very near term. Crucial short term supports are at 19317-19257.

Nifty: Pullback rally possible

• On the daily chart, we can observe that Nifty has recently managed to hold above the crucial 50 day SMA and bounced back. Moreover, considering that many sectoral indices have bounced back from price related and moving average supports, the odds seem higher of a further rise in the markets.

• Nifty could now test the next resistances at 19558-19628 in the very near term. We must however remember that weekly chart of Nifty is indicating possibility of a correction towardsthe

• previous intermediate highs and supports of 19201-18733. So caution is warranted.

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