Nifty closed at 11582 with a loss of 98 points, forming a sizable bearish candle and breaking below key support levels, indicating a shift to a short-term downward trend. If Nifty breaks below 11530, further profit taking could drive the index to 11500-11450, but a rise above 11640 could spark a pullback rally to 11680-11720. Technical indicators are negative and momentum has slowed, suggesting the index may correct to 11515-11330 if it remains below the trend deciding level of 11635.

1. Technical View (Equity)
Daily call
Index CMP % up/dn S2 S1 P R1 R2
Nifty 11,582.35 -0.84% 11450 11515 11635 11700 11820
Sensex 38312.52 -0.86% 37840 38075 38505 38740 39170
Nifty Daily Chart
Comments:
Nifty opened with an upward gap and traded positive in initial half. However profit booking in second
half erased most of the earlier gains which led index to close on near the day's low. Nifty closed at 11582
with a loss of 98 points.
The daily price action has formed a sizable bearish candle and close below five session’s support zone
indicating negative bias. With current close index has also broken down its two months “Up-sloping
Channel” at 11630 on closing basis indicating shift of short term trend towards down. The chart pattern
suggests that if Nifty breaks and sustains below 11530 levels it would witness profit booking which
would lead the index towards 11500-11450 levels. However if index crosses above 11640 levels it would
witness pullback rally which would take the index towards 11680-11720 levels. Nifty is trading above 20,
50 and 100 day SMA's 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
The trend deciding level for the day is 11635. If NIFTY trades above this level then we may witness a
further rally up to 11700-11820-11885 levels. However, if NIFTY trades below 11635 levels then we may
see some profit booking initiating in the market, which may correct up to 11515-11450-11330 levels
Stocks to focus for intraday Long Drreddy, Titan, Alkem, Enginersin, Fconsumer,
Ncc
Stocks to focus for intraday Short Asianpaint, Bajfinance, Cipla, Hindunilvr,
Icicibank, Kotakbank, M&M