Axis Direct presents daily derivatives report presenting recommendations based on technical analysis. For trading in derivatives visit https://simplehai.axisdirect.in/offerings/products/derivatives https://simplehai.axisdirect.in/share-stock-prices/nse/Asian-Paints-Ltd-34

1. Technical View (Equity)
Daily call
Index CMP % up/dn S2 S1 P R1 R2
Nifty 10,491.05 1.04% 10360 10425 10460 10530 10565
Sensex 34142.15 0.95% 33710 33925 34045 34265 34385
Nifty Weekly Chart
Comments:
Nifty started week on flat note and remained extreme volatile on either side throughout the week. Nifty
closed at 10491 with a gain of 39 points on a weekly basis.
On the weekly chart the index has formed small bullish candle with long lower shadow indicating
support at lower levels. Since past three weeks index is consolidating within broad trading range from
10640 -10300 levels and hence any either side breakout will signal further direction. Since May.17 index
continue to sustain above its Up-sloping trend line support zone of 10260 which remains a crucial level
to watch for. The index is moving in a Higher Top and Higher Bottom formation on the weekly chart
indicating positive bias. The chart pattern suggests that if Nifty crosses and sustains above 10510 levels
it would witness buying which would lead the index towards 10600-10740 levels. However if index
breaks below 10400 level it would witness selling which would take the index towards 10340-10270.
Nifty is trading below 20 and 50 day SMA's which important short term moving averages indicating
negative bias in the short to medium term. Nifty continues to remain in an uptrend in the medium term,
so buying on dips continues to be our preferred strategy. For the week, we expect Nifty to trade in the
range of 10650-10340 with a positive bias.
The weekly 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 10460. If NIFTY trades above this level then we may witness a
further rally up to 10530-10565-10630 levels. However, if NIFTY trades below 10460 levels then we may
see some profit booking initiating in the market, which may correct up to 10425-10360-10325 levels
Stocks to focus for intraday Long Radico, Jindalstel, Radico, Arvind, Hindzinc,
Dhfl, Jswenergy
Stocks to focus for intraday Short Asianpaint, Pvr, Gail