Technical View - Dec 23, 2020 - Mr. Subash Gangadharan, Technical and Derivative Analyst, HDFC Securities

Carrying on from the previous session, markets surged higher on Wednesday to close with hefty gains. Buying was seen through the day. The Nifty finally gained 134.8 points or 1.0% to close at 13,601.1.

Broad market indices like the BSE Mid Cap and Small Cap indices 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, IT and Telecom indices. There were no losers.

Technically, while the Nifty has rebounded sharply, 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 13432.

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 two 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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