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Daily Technical View on Nifty

Market: Observation

* Markets ended with modest gains on Monday. The Nifty finally gained 50 points or 0.27% to close at 18,562.75. 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: Breaks support of 18573

* Zooming into 15 min chart, we see Nifty initially opened on a weak note and recovered strongly from the morning lows to make new life highs of 18614. Selling pressure from the highs in the late afternoon session however curbed the gains for the day.

* Selling seen in the late afternoon led to intra day support of 18573 being broken. Nifty also closed below 20 period MA on 15 min chart. This indicates a weak bias for very near term and Nifty could therefore test 18528 support. A move below 18528 could see Nifty drifting down further towards 18500-18450 supports

Nifty: Headed to new lifetime highs

* On Daily chart, we observe that Nifty has broken out of a downward sloping trend line that has held down the highs of 2021 and 2022 and rallied to new life highs. In the process, index is now trading above 20 and 50 day SMA.

* Furthermore, with the Nifty clearing the recent swing highs of 18442 and the 14-day RSI not overbought at 68.44, we believe Nifty is likely to make new life highs in the coming sessions. A move below the 20 day SMA at 18258 would negate our bullish view.

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