IGI Logo

Daily Technical View on Nifty

Market: Observation

* Markets rallied on Thursday after a shaky opening. Nifty finally gained 165.95 points or 0.92% to close at 18,255.8. Broad market indices like the BSE Mid Cap and Small Cap indices gained slightly less, thereby under performing the Sensex/Nifty. Market breadth was positive on the BSE/NSE.

Nifty: Short term uptrend still intact

* Zooming into 15 min chart, we observe that Nifty recovered from the morning lows and gradually climbed higher to close near the highs of the day. In the process, Nifty has closed just below the previous swing high of 18265.

* While the short term trend remains UP, it is now matured. Immediate supports to watch for weakness are at 18180-18066.

Nifty: Short term correction is likely

* On Daily chart we observe that Nifty has taken out the recent swing highs of 18135 and 18201, indicating the uptrend remains intact. However, with the sharp rise seen recently and 14-day RSI entering overbought territory, we remain open to short term corrections or consolidations.

* A short term correction is likely once the immediate supports of 18066-18042 are broken. Next major support to which the Nifty could play down to is the previous swing high of 17863.

* In terms of strategy, traders need to be extremely selective with respect to fresh long positions. Strict stop losses need to be kept for trading positions to control risk.

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