Bank Nifty, IT, PSU Bank and Realty indices are currently the strongest sectoral indices - HDFC Securities Ltd
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Daily Technical View on Nifty
Market: Observation
Carrying on from last Friday, markets moved up further on the back of a decisive BJP-led Mahayuti Alliance victory in Maharashtra and robust short covering. Resilient Asian and US markets also helped to fuel the rally. Nifty finally gained 314.65 points or 1.32% to close at 24,221.9. Broad market indices like BSE Mid Cap and Small cap indices gained more, thereby outperforming the Sensex/Nifty. Market breadth was positive on the BSE/NSE.
Nifty: Minor correction or consolidation is possible
On Nifty 15 min chart, we can observe that Nifty opened with a big upgap and then corrected from the highs in the afternoon session. In the process, it has moved below the 20 period MA on the 15 min chart.
Short term correction towards the support of 23961 is therefore not ruled out, before a resumption of the near term uptrend. The uptrend would resume once Monday’s high of 24352 is taken out.
Nifty: Market could see more upsides
Daily timeframe indicates that with the Nifty bouncing back strongly last Friday and continuing to move higher on Monday on the back of positive market breadth and outperformance from the broad market indices, the odds seem higher for more upsides in the coming sessions.
Immediate upside target for the Nifty is at the recent swing high of 24538. Further upsides are likely once these highs are taken out. We must however remember that the intermediate trend is still down and therefore the current pullback rally may not last very long. Bank Nifty, IT, PSU Bank and Realty indices are currently the strongest sectoral indices.
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