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Daily Technical View on Nifty

Market: Observation

Markets ended lower on Friday as it took a breather after the strong upmove seen on Thursday. Nifty finally lost 30.6 points or 0.12% to close at 24,677.8. 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: Near term trend is still UP

On Nifty 15 min chart, we can observe that Nifty bounced back from the 50 period MA on Thursday and was consolidating in a range on Friday. The 20 period MA is also above the 50 period MA on the 15 min chart, indicating that the near term uptrend is still intact. Crucial supports to watch for a reversal of the near term uptrend are at 24495.

Nifty: Short term uptrend still intact

Daily timeframe indicates that Nifty has bounced back smartly from the 20 day SMA and has also crossed the 50 day SMA on Thursday. Momentum indicators like the 14-day RSI too are rising and at 59.21 is not overbought. This suggests scope for more upsides in the coming sessions. With most of the sectoral indices too in uptrend, this increases the probability of the uptrend continuing. Short term corrections or consolidations are possible. Crucial supportsfor the Nifty are at 24495-24295.

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