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Daily Technical View on Nifty

Market: Observation

Markets corrected on Friday after a positive opening. Nifty finally lost 33.1 points or 0.16% to close at 20,103.1. 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: In consolidation mode?

Zooming into 15 min chart, we observe that Nifty failed to cross the previous session’s high and gradually came lower to close near the lows of the day.
While the Nifty has corrected, the index remains in a short term uptrend as the recent support of 22305 has not been broken. Zooming into the 60 min chart, we can notice that the Nifty is now trading in a range above the 50 period MA.

Nifty: Has bounced back from trend line supports

On the daily chart, we can observe that the Nifty has recently bounced back from a low of 21777 which also roughly coincides with a trend line support connecting the swing lows of the last two months.
With the Nifty correcting on Friday, traders will now need to see if the Nifty can convincingly cross the recent swing high of 22626 for the bulls to gain an upper hand.
Crucial supports to watch for further weakness are at 22305-22235.

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