Technical View - March 9, 2021 - Mr. Subash Gangadharan, Senior Technical & Derivative Analyst, HDFC securities

Markets ended with hefty gains on Tuesday after consolidating in the last few sessions. The Nifty finally gained 142.2 points or 0.95% to close at 15,098.4. Broad market indices like the BSE Mid Cap and Small Cap indices ended lower, thereby under performing the Sensex/Nifty. Market breadth was negative on the BSE/NSE.

Sectorally, the top gainers were the BSE Bankex, IT and CD indices. The top losers were the BSE Metal, Oil and Gas, Realty and Power indices.

Technically, while the Nifty is still stuck within the 14862-15111 range, the way in which the markets moved up in the last one hour of trade suggests that there could be a breakout on the upside.

This is because zooming into the 15 minute chart, we can see that the Nifty made a new 3 day high on the back of a big 15 minute green candle towards the closing. However, given that it closed within the range, we do not yet have a confirmed breakout.

On the daily chart, the Nifty remains in uptrend and has managed to close above the 20 day SMA accompanied with a pick up in momentum readings like the 14-day RSI. Immediate upside target once the 14862-15111 breakout is confirmed would be the recent high of 15273.

Downside support to watch for resumption of weakness is the recent low of 14862.

Conclusion: The Nifty is in consolidation mode. Further directional cues are likely to emerge on a move beyond the 14862-15111 range. A breakout is likely to lead to the Nifty testing the 15273 levels. Downside support to watch for resumption of weakness is the recent low of 14862.

Source : Equity Bulls

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