Markets bounced back on Wednesday after the sharp - HDFC Securities
Daily Technical View on Nifty
Market: Observation
Markets bounced back on Wednesday after the sharp fall seen over the last few sessions. Nifty finally gained 304.95 points or 1.27% to close at 24,297.5. Broad market indices like the BSE Mid Cap and Small Cap indices gained more, thereby outperforming the Sensex/Nifty. Market breadth was positive on the BSE/NSE.
Nifty: Near term downtrend reverses On 15 min chart, we can observe that Nifty opened higher and then consolidated in a range. Nifty was holding above the 50 period MA on the 15 min chart and in the process there was a positive MA crossover as 20 day SMA moved above 50 day SMA. On the 15 min chart, we can also observe that the Nifty has made a higher bottom on Wednesday. This augurs well for the near term uptrend to continue. A move above immediate resistances of 24338-24383 could trigger further upsides.
Nifty: Daily chart indicates downtrend intact While the intra day charts indicate a reversal of recent downtrend, the daily timeframe indicates that Nifty remains in a downtrend after breaking the previous lows of 24210-24074. The index has now pulled back from the 50 day SMA. Traders therefore need to watch till where this pullback rally can go. Immediate resistances are at 24338-24383 and after that we have the 20 day SMA at 24553. So these are the levels to watch in the coming sessions.
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Post Market comment by Mandar Bhojane, Research Analyst, Choice Broking