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1. Technical View (Equity)
Daily call
Index CMP % up/dn S2 S1 P R1 R2
Nifty 11,067.45 0.91% 10815 10940 11010 11140 11210
Sensex 36652.06 0.96% 35830 36240 36475 36885 37115
Nifty Daily Chart
Comments:
Nifty opened on a flat note and witnessed extreme volatility on either side for most part of the session.
However last hour buying momentum pulled index higher to end near the day’s high. Nifty closed at
11067 with a gain of 100 points.
On the daily chart index has formed a bullish candle however it has continue to form lower High-Low
compare to previous session indicating negative sign. After five sessions of losing streak, Nifty showed
some relief rally and end the session on positive note. With previous session’s low Nifty manage to hold
its panic swing low of 10866 formed on 21st
Sept. hence in near term 10866 will remains a crucial
support zone . The chart pattern suggests that if Nifty crosses and sustains above 11100 levels it would
witness buying which would lead the index towards 11170-11200 levels. However if index breaks below
10970 levels it would witness selling which would take the index towards 10930-10900. Nifty is trading
below 20 and 50 day SMAs which are important short term moving average, indicating negative bias in
the short term. Nifty continues to remain in a downtrend in the short term, so exit on small pullback
rallies to be our preferred strategy.
The daily strength indicator RSI is moving upwards below its reference line indicating a possible
consolidation or an up move while the momentum oscillator Stochastic has turned positive from the
oversold zone and is above its reference line indicating positive bias.
The trend deciding level for the day is 11010. If NIFTY trades above this level then we may witness a
further rally up to 11140-11210-11335 levels. However, if NIFTY trades below 11010 levels then we may
see some profit booking initiating in the market, which may correct up to 10940-10815-10740 levels
Stocks to focus for intraday Long Hcltech, Acc, Biocon, Hindzinc, Igl, UBL, SBIN
Stocks to focus for intraday Short Infratel, Powergrid, Aegischem, Arvind, Cdsl