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Daily Technical View on Nifty

Market: Observation

* Markets surged higher on Wednesday to close at a new life high. Nifty finally gained 93.85 points or 0.38% to close at 24,951.15. Broad market indices like the BSE Mid Cap index 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 and gradually climbed higher with the 50 period MA providing support. Towards the closing, Nifty also broke out of an intraday range and crossed its previous session’s highs.

* This indicates that the near term uptrend is intact as long as the immediate support of 24898 is not broken.

Nifty: Uptrend looks set to continue

* Nifty remains in an uptrend after recently bouncing from the 20 day SMA and making new life highs.

* The 14-day RSI has also bounced back from its previous lows and is in rising mode now.

* Most of the sectoral indices too are showing strength, which augurs well for the overall markets. The Auto index in particular is showing relative strength as it has recently broken out of a range.

* Short term traders can build long positions with a stop loss below the recent swing low of 24774.

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