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1. Technical View (Equity)
Weekly call
Index CMP % up/dn S2 S1 P R1 R2
Nifty 10,316.45 -2.67% 10095 10205 10375 10485 10650
Sensex 34376.99 -2.25% 33650 34015 34565 34930 35480
Nifty Weekly Chart
Comments:
Nifty started the week on a flat note but continued its previous week's negative momentum to
end the week on a weak note. Nifty closed at 10316 with a loss of 614 points on a weekly basis.
On the weekly chart the index has formed a long bearish candle forming lower High-Low
compare to previous week and has closed below its low indicating weakness at current levels.
The index is moving in a Lower Top and Lower Bottom formation on the daily chart indicating
negative bias. The chart pattern suggests that if Nifty breaks and sustains below 10200 levels it
would witness selling which would lead the index towards 10100-9950 levels. However if index
crosses above 10430 level it would witness buying which would take the index towards 10550-
10600. Nifty is trading below 20, 50 and 100 day SMAs which are important short term moving
average, indicating negative bias in the short to medium term. Nifty continues to remain in a
downtrend in the short to medium term, so selling on rallies continues to be our preferred
strategy. For the week, we expect Nifty to trade in the range of 10100-10500 with a negative
bias.
The weekly strength indicator RSI and momentum oscillator Stochastic both are moving
downwards and are below their respective reference lines indicating negative bias
The trend deciding level for the day is 10375. If NIFTY trades above this level then we may
witness a further rally up to 10485-10650-10765 levels. However, if NIFTY trades below 10375
levels then we may see some profit booking initiating in the market, which may correct up to
10205-10095-9925 levels
Stocks to focus for intraday Long Infratel, Apollohosp, Crompton, Koltepatil,
Naukri
Stocks to focus for intraday Short Adaniports, Bajfinance, Coalindia, Grasim, Itc,
Jswsteel