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Daily Technical View on Nifty

Market: Observation

* Markets ended lower on Wednesday after a gap down opening. The Nifty finally lost 62.6 points or 0.34% to close at 18,285.4. 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: Short term trend remains UP

* Zooming into 60 min chart, we observe that though there was a recovery from the lows in the morning session, selling pressure again resumed from the highs and pulled the index into negative territory.

* The Nifty is however still holding above the previous swing lows of 18250. This gives the bulls a chance to make a come back. Upsides are likely to gain momentum once the immediate resistance of 18326 is taken out.

Nifty: Takes a breather; Uptrend to continue

* On Daily chart, we observe that Nifty has taken a breather in the last two sessions after recently bouncing back from the 20 day SMA.

* We therefore expect the uptrend to continue, despite selling seen in the last two sessions.

* Immediate upside targets for Nifty are at 18459 once resistance of 18420 is taken out. Moreover, as the longer time frame indicates that the Nifty remains in an uptrend, we believe that our immediate targets of 18459 are also likely to be taken out in the coming sessions

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