Nifty would now need to hold above the recent lows of 24874 for the near term uptrend to continue - HDFC Securities
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Daily Technical View on Nifty
Market: Observation
* Markets ended with marginal gains on Tuesday after a largely rangebound session. Nifty finally gained 7.15 points or 0.03% to close at 25,017.75. 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 uptrend looking tired
On Nifty 15 min chart, we can observe that Nifty was trading in a range, but moved below the 20 and 50 period MA towards the closing. It however closed above the morning lows , which gives some hope for the bulls. Nifty would now need to hold above the recent lows of 24874 for the near term uptrend to continue.
Nifty: Daily chart indicates uptrend could continue
* The daily timeframe indicates that Nifty has broken out of a range after consolidating above the 50 day SMA two weeks back.
* Nifty has also filled the two gap areas as it closed above it on Monday. With momentum indicators like 14-day RSI at 64.04 and not overbought, we expect the Nifty to test current life highs of 25078 and make new life highs. Our bullish bets will be off if Nifty corrects and moves below recent swing lows of 24771.
* Sectorally, most of the sectoral indices are looking positive on the charts. The stronger sectors are Auto, Pharma, Infra, Media and Metal.
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