IGI Logo

Daily Technical View on Nifty

Market: Observation

* Markets corrected on Monday after a positive morning session. The index witnessed selling pressure at crucial resistances which led to a negative closing. The Nifty finally lost 51.45 points or 0.32% to close at 16,214.7. Broad market indices like the BSE Small Cap index lost more, thereby under performing the Sensex/Nifty. Market breadth was negative on the BSE/NSE.

Nifty: Reacts from 16400

* Zooming into 15 minute chart, we see that Nifty has failed to convincingly cross the crucial resistance of 16400 and corrected from the highs. In the process, the index also closed below the 20 and 50 period MA. This indicates weakness.

* Traders will now need to watch if the Nifty can hold above the immediate support of 16116. Else, we could see a further correction.

Nifty:Daily chart shows pullback rally possible

* Daily timeframe of Nifty indicates that index has made a double bottom around the 15735 levels and rallied sharply on Friday. Nifty now needs to move above the recent swing high of 16400 for the bulls to gain control. Till then, Nifty could remain range bound andweak.

* While we remain open to further pullback rallies in the very near term, we must remember that the intermediate trend remains down. The bears would gain more control once the recent intermediate low of 15735 is broken. Till then enjoy any rally till itlasts.

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