A quick technical update on the benchmark indices.
Nifty Technical View
- We did cross the 8050 tops indicating a short term trend reversal post the lower tops and bottoms.
- Now very close to the upper band of the channel at 8300-8400.
- Given that its almost a 10 month channel it cannot be taken out so easily.
- Expect a lot of sideways boring period.
- 8100 a near term support.
Bank Nifty Technical View
- Similarly Bank Nifty is also getting closer to the upper end of the channel at 18000-18300.
- Near term support at 17400.
- Almost same bottoms in all corrections in last 12-18 months,
- A good consolidation going on rather then a downtrend given the subdued Nifty.
- Shows the action is more on smallcaps.
CNX Midcap Index
- Good base made in Midcap Index without breaking lows.
- Just 4-5% away from all time highs.
- Clearly midcaps have performed better and the chart still in an uptrend.
Bottomline - Till the time we do not see a fresh uptrend in Nifty beyond new highs above 8400/8650 there could be a lot of consolidation with stock specific action in midcaps/smallcaps.
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