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1. Technical View (Equity)
Daily call
Index CMP % up/dn S2 S1 P R1 R2
Nifty 10,614.35 -0.18% 10515 10565 10605 10655 10695
Sensex 34906.11 -0.12% 34605 34755 34885 35035 35170
Nifty Daily Chart
Comments:
Nifty opened with a downward gap and traded with extreme volatility on either side to end on negative
note. Nifty closed at 10614 with a loss of 19 points.
On the daily chart index has formed a small bullish candle carrying either side shadows representing
volatility however it has formed a lower High-Low compare to previous session which remains a
negative sign. The index is moving in a Higher Top and Higher Bottom formation on the hourly chart
indicating short term up trend. The chart pattern suggests that if Nifty crosses and sustains above 10630
levels it would witness buying which would lead the index towards 10670-10700 levels. Important
Supports for the day is around 10580 However if index sustains below 10580 then it may witness profit
booking which would take the index towards 10550-10530 levels. Nifty is trading below its 20 day SMA’s
which indicating negative bias in the short term. Nifty continues to remain in an uptrend in the long
term, so accumulation on dips and near major support zone 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 10605. If NIFTY trades above this level then we may witness a
further rally up to 10655-10695-10745 levels. However, if NIFTY trades below 10605 levels then we may
see some profit booking initiating in the market, which may correct up to 10565-10515-10475 levels
Stocks to focus for intraday Long Gruh, M&M, GodrejInd., BataInd., Graphite,
Hindzinc, HdfcBk
Stocks to focus for intraday Short Oil, Srtransfin, Pnbhousing, Auropharma, Infratel