Market breadth was positive on the BSE/NSE - HDFC Securities Ltd
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Daily Technical View on Nifty
Market: Observation
Markets ended sharply lower on Thursday after a positive opening. Nifty finally lost 360.75 points or 1.49% to close at 23,914.15. Broad market indices like BSE Small Cap index gained more, thereby outperforming the Sensex/Nifty. Market breadth was positive on the BSE/NSE.
Nifty: Breaks down from range
On Nifty 15 min chart, we can observe that Nifty has broken down from a 3 day range and has closed near the lows of the day. Nifty is now resting on the 200 period MA on the 15 min chart, which could provide some near term support.
On the 15 min chart, there has been a negative MA crossover as the 20 period MA has moved below the 50 period MA. This gives the bears an upper hand and we therefore expect more downsides in near term.
Nifty: Could find it difficult to move higher
Daily timeframe indicates that Nifty found it difficult to move above the recent swing high of 24355 and broke its recent range in the process and closed below the 20 day SMA. 14-day RSI too has weakened.
This gives the bears an upper hand in the near term as Nifty is likely to find it difficult to move above the recent swing high of 24355.
Further weakness is likely once the immediate support of 23873 is broken. Downside targets are at 23676- 23567.
Auto, Pharma and IT indices are currently the weakest sectoral indices.
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