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Daily Technical View on Nifty

Market: Observation

•Markets ended the week last Friday on a positive note as the Nifty ended with decent gains. Nifty finally gained 66.7 points or 0.29% to close at 23,465.6. 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 uptrend intact •On 15 min chart, we can observe that Nifty opened on a positive note but immediately declined in the morning session. It however recovered quickly and then gradually climbed to close near the highs of the day.

•While the near term uptrend is intact, Nifty still remains stuck within the 23200-23500 trading range for the last one week. Important that the support of 23334 holds on any short term correction.

Nifty: Set for new life highs

•While the Nifty remains in a tight range, the positive market breath, outperformance from the Midcap and Small Cap indices and the fact that most of the sectoral indices remain in uptrend, increases the odds of an upside breakout of the current trading range.

•While we expect new life highs in the coming sessions, we remain open to short term corrections. It is important that crucial supports of 23334-23206 are not broken. Else the current uptrend would reverse. Sectorally, defensive sectors like FMCG and IT are taking a breather and can be avoided for the time being.

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