Its been some time since we have looked into the Nifty technical view as it has been pretty range bound.
For the last few days we have seen a good 300 points dip from the recent highs and now again we are standing at important supports.
The biggest concern as before is the lack of leadership. IT continues to lead or rather now just holding on to the gains. Banks continue the weakness and expected to remain a laggard or for quick traders only. Even the defensives in Pharma and FMCG is sluggish. So all we end up is stocks moving in a tight range in the index.
In such a case we need to be stock specific rather than index specific.
Anyways lets look at how technicals are poised.
Nifty Technical View
-> Nifty has made a classical doji on a gap down day which is a positive sign only if we see a follow up in coming couple of sessions above todays highs.
-> Nifty is pretty close to the 200 day exponential moving average. Although this has not been as much of a support previously but generally its good to look at price action around this.
-> The last couple of bottoms were at 5970 and below that 5700. So if it holds 5950-6050 we could still be open for an upside to 6300. Long term support now remains at 5700. Traders may keep a stoploss of 5950 and look for longs on dips.
Thanks and Regards,
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