Technical View - Dec 28, 2020 - Mr. Subash Gangadharan, Technical and Derivative Analyst, HDFC Securities

Carrying on from the previous session, markets surged higher on Monday to close with healthy gains. It was the fourth consecutive session of gains for the Nifty after the sell off seen on last Monday. The Nifty finally gained 123.95 points or 0.9% to close at 13,873.2.

Broad market indices like the BSE Small Cap index gained more, thereby out 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 Realty, Metal, CD and Bankex indices.

Technically, with the Nifty surging higher and taking out the highs of 13778 seen last Monday prior to the sharp correction, the short term trend has turned up. We expect the index to make new life highs in the coming sessions. Short term supports to watch are now at 13811.

Conclusion: The short term trend has now turned up. The intermediate uptrend too is still intact and we are likely to see new life highs in the coming sessions. It is important that the supports of 13811-13729 are not broken for the uptrend to sustain.

Source : Equity Bulls

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