Nifty is improving and the market now seems to be placed for upward bounce :: HDFC securities- Technical Snapshot

Please Share::

�� India Equity Research Reports, IPO and Stock News Visit http://indiaer.blogspot.com/ for complete details ��

��

-->
Observation:
 After showing sideways consolidation type of movement with negative bias on Tuesday, Nifty showed yet
another lackluster type move today within a small range of around 38 points.
 Nifty opened today with flat note and shifted into intraday consolidation for entire session within high low
range of around 8546-8508 levels. The lower support area of 8505 level is still intact and has not violated
yet.
 The crucial lower levels support of previous upside gap area of 28th Nov around 8516-8506 levels is still
holding the Nifty during intraday (the gap has been filled completely). The formation of small body
candles in the last couple of session is hinting at the possibility of yet another upside bounce for the
market for short term.
 Though, Nifty has moved up today with small gains of around 12 points, the market breadth was strong
today (the AD ratio was around 2:1- more advancing issues and lesser declining issues). This suggests
the inherent strength of the market to move up further.

 The positive sequence of higher tops and bottoms in Nifty as per daily timeframe is intact and yesterday’s 

low of around 8504 could be a new higher bottom of the sequence. Now one may expect further upmove 

in the market to form a new higher top.

Conclusion & Strategy:

 The inherent strength of underlying trend of Nifty is improving and the market now seems to be placed 

for upward bounce for next session.

 As long as the key support of 8505 levels holds, there is a possibility of Nifty showing bounce back up to 

8625 is likely for near term. If that support breaks on the lower side, then there is a chance of fresh 

weakness down to 8440 levels.

LINK

http://www.hdfcsec.com/Share-Market-Research/Research-Details/StockReports/3010128