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1. Technical View (Equity)
Daily call
Index CMP % up/dn S2 S1 P R1 R2
Nifty 11,643.95 -0.59% 11545 11595 11680 11725 11810
Sensex 38877.12 -0.46% 38550 38710 38990 39155 39435
Nifty Daily Chart
Comments:
Nifty opened with an upward gap and witnessed consolidation for first half of the session. However in
the second half selling pressure dragged index lower to close near the day's low. Nifty closed at 11644
with a loss of 69 points.
On the daily chart the index has formed a Bearish candle which has totally engulfed its previous day's
move forming a "Bearish Engulfing" candlestick formation which is a bearish reversal formation. For such
formations confirmation is necessary, so if the index breaks below previous day's low it would witness a
change of trend to the downside. The chart pattern suggests that if Nifty breaks and sustains below 11600
levels it would witness selling which would lead the index towards 11550-11500 levels. However if index
crosses above 11700 level it would witness buying which would take the index towards 11750-11780
levels. Nifty is trading above 20, 50 and 100 day SMAs which are important short term moving averages,
indicating positive bias in the short to medium term. Nifty continues to remain in an uptrend in the short
and medium term, so buying on dips continues to be our preferred strategy.
The daily strength indicator RSI and momentum oscillator Stochastic have both turned negative and are
below their respective reference lines indicating negative bias

2. The trend deciding level for the day is 11680. If NIFTY trades above this level then we may witness a
further rally up to 11725-11810-11860 levels. However, if NIFTY trades below 11680 levels then we may
see some profit booking initiating in the market, which may correct up to 11595-11545-11465 levels
STOCKS IDEAS FOR THE DAY
Company Name BUY/SELL RANGE Stop Loss Target
UJJIVAN SELL Below 326 332 320/315
MARUTI BUY Above 7100 7040 7180/7250