IGI Logo

Daily Technical View on Nifty

* Nifty continued its northward journey for the third sessions in the row on Monday on the back of strong global cues. Nifty gained over 133 points to close at 15832 levels. This is the highest closing for the Nifty since 10-June.

* Nifty has shown signs of bottoming out for the short term and has formed a higher low in the past 5-6 sessions. Moreover, Nifty closed above the 5 and 11 day EMA, indicating short term trend turned positive.

* During the last week, Nifty made a higher bottom at 15367, while the index is yet to cross its previous swing high of 15863 on the closing basis. The 14 day RSI has however made a positive divergence, which is a positive signal for the near term. Moreover RSI and MFI oscillators have witnessed breakout from the downward sloping trendline, suggesting higher possibility of price to follow them in the days to come.

* A convincing close above 15863, would give the bulls an upper hand and possibly lead to a further rally towards the next resistances at 16026-16173 where we have a downward gap area and the 20 day SMA.

* To Conclude, Short term trend has turned positive for the Nifty. Immediate resistance for Nifty is seen at 16026-16173 levels, where we have a downward gap area and the 20 day SMA. Far resistance is seen around 16500 levels. Longs should be protected with stoploss of 15400 levels.

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