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1. Technical View (Equity)
Daily call
Index CMP % up/dn S2 S1 P R1 R2
Nifty 11,053.80 -0.12% 10910 10985 11065 11135 11215
Sensex 36542.27 -0.30% 36030 36285 36615 36870 37195
Nifty Daily Chart
Comments:
Nifty opened with an upward gap and witnessed some profit booking in initial hour. In second half index
remained lacklustre within 11000-11065 levels throughout the session. Nifty closed at 11054 with a loss
of 14 points.
On the daily chart index has formed a bearish candle however it manage to maintain higher High-low
compare to previous session indicating positive bias. For the second consecutive session index manage to
sustain above its 100 day SMA (11035) which is crucial support to watch for. On hourly chart Nifty continue to
form higher Top higher Bottom formation indicating positive bias. The chart pattern suggests that if Nifty
breaks and sustains below 10980 level it would witness selling which would lead the index towards
10920-10870 levels. However if index crosses above 11090 level it would witness pullback rally which
would take the index towards 11150-11190. Nifty is trading below 20 and 50 day SMA's which are
important short term moving averages, indicating negative bias in the short to medium 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 downwards and is quoting below its reference line indicating
negative bias. However momentum oscillator Stochastic has turned positive from the oversold zone
indicating a possible consolidation or a up-move in the near term.
The trend deciding level for the day is 11065. If NIFTY trades above this level then we may witness a
further rally up to 11135-11215-11290 levels. However, if NIFTY trades below 11065 levels then we may
see some profit booking initiating in the market, which may correct up to 10985-10910-10830 levels
Stocks to focus for intraday Long ACC, Cipla, GEPIL, Gujarat Alkali, Hindalco,
Reliance
Stocks to focus for intraday Short DishTv, Dmart, Infratel, KEC, Network18,
NIITECH