Nifty closed with the modest gains of around 32 points:: HDFC Securities

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Observation:
 The lackluster upmove continued in the market today, as Nifty closed with the modest gains of around 32
points.
 After opening with positive note, Nifty was not able to show decisive move for entire session. The range
of today was limited to the 8774-8727 levels. The market breadth was continued to be weak, as more no
of declining issues were registered during today’s new all time high formation at 8774 levels.
 Nifty is gradually advancing towards the crucial overhead hurdles of around 8850 levels, which is upper
area of upward sloping green channel line.
 We observe a formation of small body bullish candles in the last couple of sessions around the all time
high area, which is not a good sign for bulls to maintain the upward momentum. This suggests instability
of the market at higher levels.
 Daily momentum oscillator like 14 period RSI has reached the upper area of 70, which is also near the
upper bullish range of around 75-80 levels (bullish range-40-75/80 levels).
 The positive sequence of higher tops and bottoms is still intact and currently Nifty has placed at the
juncture off the formation of new higher top around 8850 levels.

Conclusion & Strategy:

 The underlying short term trend of Nifty continued to be positive, but instability and weak market

breadth is now creeping the market.

 The key overhead hurdle to be watched is around 8850 levels (upper channel line) and the immediate

support is placed around 8720 levels.

link

http://www.hdfcsec.com/Share-Market-Research/Research-Details/StockReports/3010888