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Daily Technical View on Nifty

Market: Observation

* Markets ended with modest gains on Thursday after a weak morning session. The Nifty finally gained 12.25 points or 0.07% to close at 17,956.5. 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 uptrend still intact

* Zooming into 15 minute chart, we see Nifty opened with a down gap. The index then recovered from the lows and gradually climbed higher to close near the highs of the day. In the process, Nifty closed above the 20 period MA on the 15 min chart. While short term uptrend remains intact, it is matured as 20 and 50 period MA on 15 min chart has flattened. Current short term uptrend would reverse with a move below 17852. Downside targets in this scenario are at 17764-17597.

Nifty:Daily chart shows index couldrise further

* On Daily chart, we observe that Nifty has broken out of a downward sloping trend line that held down the highs of 2021 and 2022. Technical indicators too are giving positive signals as rising 20 day SMA is above rising 50 day SMA.

* We therefore feel that uptrend is likely to continue. We must however remember that current short term uptrend is matured and could witness a short term correction in near term. This would also be healthy for markets as it would give an opportunity for new positions to be built. Supports to watch for weakness are now at 17764-17597.

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