Nifty has closed just above the 20 day SMA at 21693 - HDFC Securities
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Daily Technical View on Nifty
Market: Observation Markets corrected on Thursday on the back of the Monetary Policy announcements. Nifty finally lost 212.55 points or 0.97% to close at 21,717.95. Broad market indices like the BSE Small Cap index lost less, thereby out performing the Sensex/Nifty. Market breadth was negative on the BSE/NSE.
Nifty: Still holding above recent swing low of 21658 Zooming into 15 min chart, we observe that Nifty opened with an upgap, but failed to sustain at the highs after the monetary policy announcement and corrected sharply to close near the lows of the day.
While the Nifty has broken its near term intra day supports, it is still holding above the crucial swing low of 21658. This gives hope for the bulls in the very near term.
A close below 21658 could however trigger a further correction towards next supports of 21448-21407.
Nifty: Near crucial supports On the daily chart, the Nifty has recently bounced back from close to its 50 day SMA and made higher tops and higher bottoms over the last ten sessions.
The selling seen on Thursday is on the verge of disturbing the current uptrend as the Nifty has closed just above the 20 day SMA at 21693. We will nevertheless stick to our current trend, which is UP.
A close below 21693 could however trigger a further correction that could take the Nifty towards the next major supports of 21448-21407.
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