Nifty opened with an upward gap but witnessed selling pressure throughout the day, closing near its lows with a loss of 136 points. On the daily chart, Nifty has formed a long bearish candle indicating sustained selling pressure. Nifty continues to consolidate in a broad trading range between 10180-9680 representing a sideways trend. Technical indicators like the RSI and Stochastic have turned negative, supporting the bearish bias in the short term. Key support levels are seen at 9680-9650, while resistance is at 9780-9820.

1. Technical View (Equity)
Daily call
Index CMP % up/dn S2 S1 P R1 R2
Nifty 9,735.75 -1.38% 9585 9660 9790 9865 9995
Sensex 31159.81 -1.39% 30655 30910 31355 31605 32050
Nifty Daily Chart
Comments:
Nifty opened with an upward gap but witnessed selling from the opening tick to end near the day's low.
Nifty closed at 9736 with a loss of 136 points.
On the daily chart the index has formed a long bearish candle indicating sustained selling pressure. Since
past three to four months index continue to consolidate in a broad trading range (10180-9680)
representing sideways trend. On hourly chart Nifty continue to trend downside forming lower Top lower
Bottom formation which supports bearish bias. The chart pattern suggests that if Nifty crosses and
sustains above 9750 level it would witness buying which would lead the index towards 9780-9820 levels.
However if index breaks below 9710 level it would witness selling which would take the index towards
9680-9650. Nifty is trading below 20, 50 and 100 day SMA's which indicating negative bias in the short
term. Nifty continues to remain in a downtrend in the short to medium term, so selling on rallies
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 9790. If NIFTY trades above this level then we may witness a
further rally up to 9865-9995-10075 levels. However, if NIFTY trades below 9790 levels then we may see
some profit booking initiating in the market, which may correct up to 9660-9585-9455 levels
Stocks to focus for intraday Long Abb, NiitTech
Stocks to focus for intraday Short Wockpharma, BOB, Jindalstel, Hexaware, PTC,
Centurytext