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Daily Technical View on Nifty

Market: Observation

* Markets ended flat on Friday. Nifty finally lost 0.95 points to close at 22,513.7. 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: Consolidating in a tight range

* Zooming into 15 min chart, we observe that Nifty is now consolidating in a tight range between the 22303- 22619 levels.

* The index will now attempt to cross the recent swing high of 22619. Crucial supports to watch for resumption of weakness are at 22303-22222.

Nifty: Uptrend intact – Set for new life highs

* On the daily chart, with Nifty recently bouncing back from the 21700 levels, it remains in a short term and intermediate uptrend. The index is now consolidating in a range between the 22303-22619 levels. A breakout of these levels could see the Nifty targeting new life highs of 22800 and 23000.

* Technical indicators like the 14-day RSI too are supporting the market as they are in rising mode and at 61.95 is not overbought. Nifty also trades above the 20 and 50 day SMA.

* Crucial supports to watch for weakness are at 22300- 22222. These levels coincide with recent swing lows and the 20 day SMA.

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