Technical View - Dec 24, 2020 - Mr. Subash Gangadharan, Technical and Derivative Analyst, HDFC Securities

Carrying on from the previous session, markets surged higher on Thursday to close with healthy gains. It was the third consecutive session of gains for the Nifty after the sell off seen on Monday. The Nifty finally gained 148.15 points or 1.09% to close at 13,749.25.

Broad market indices like the BSE Mid Cap and Small Cap indices gained less, thereby under performing the Sensex/Nifty. Market breadth was positive on the BSE/NSE.

All the sectoral indices ended in the green. The top gainers were the BSE Bankex, Oil and Gas, Metal and Telecom indices. The top losers were the BSE IT, Realty and Capital Goods indices.

Technically, while the Nifty has rebounded smartly in the last 3 sessions, the short term trend remains down. This would reverse with a close above the recent highs of 13778. Immediate supports to watch for resumption of weakness are at 13626.

Conclusion: The short term trend continues to remain down. However, with the intermediate uptrend still intact, we expect the recent correction to be more of a short term nature and may have possibly bottomed out with the strong price action seen in the last three sessions. It is important that the recent lows of 13131 are not broken for the uptrend to sustain.

Source : Equity Bulls

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