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Daily Technical View on Nifty

Market: Observation

* Markets took a breather on Friday after the hefty rally seen on last Thursday. Nifty finally lost 32.4 points or 0.13% to close at 25,356.5. 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: Short term trend has turned up

On Nifty 15 min chart, we can observe that Nifty was trading in a range after a positive opening on last Friday. The short term trend nevertheless remains up as the Nifty convincingly broke out of its recent trading range on Thursday.

The 20 period MA also remains above the 50 period MA indicating the recent positive MA crossover is intact.

Nifty: Daily chart indicates uptrend could continue

Daily timeframe indicates short term trend of Nifty has turned up with the index recently bouncing back from the 20 day SMA and ending the week at new life highs.

With momentum indicators like the 14-day RSI too in rising mode and above the 60 levels, we expect the momentum to pick up in the coming sessions.

Our bullish bets will be off if Nifty falls and moves below the recent swing lows of 24941-24885.

Sectorally, the strongest sectors currently are Bank Nifty, Fin Nifty, FMCG, Pharma and IT indices.

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