The Nifty index opened with a gap up but saw selling pressure in the early hours and remained range bound between 10840-10785 for the rest of the session, closing at 10793 with a loss of 14 points. On the daily chart, the index has formed a bearish candle while staying within the high-low range of the previous session, indicating an absence of strength. Key support levels are 10770 and 10730-10750, while resistance is at 10830 and 10880-10900. Technical indicators point to a negative bias in the short term, so an exit on small rallies is the preferred strategy.

1. Technical View (Equity)
Daily call
Index CMP % up/dn S2 S1 P R1 R2
Nifty 10,792.50 -0.13% 10735 10765 10815 10845 10895
Sensex 35867.44 -0.11% 35670 35770 35925 36025 36185
Nifty Daily Chart
Comments:
Nifty opened with an upward gap however it witnessed selling pressure in opening hour. In remaining
session index remained lacklustre within range of 10840-10785 levels throughout the session. Nifty
closed at 10793 with a loss of 14 points.
On the daily chart index has formed a bearish candle however it remained restricted within previous
session's High-Low range indicating absence of strength on either side. For the last 5 sessions Nifty is
trading in the range of 10880-10730 levels and these levels will remain crucial in near term. Any side
breakout will give signal for further direction of Nifty. The chart pattern suggests that if Nifty breaks and
sustains below 10770 levels it would witness selling which would lead the index towards 10750-10730
levels. However if index crosses above 10830 level it would witness pullback rally which would take the
index towards 10880-10900 levels. Nifty is trading below 20 and 50 day SMAs which are important short
term moving average, indicating negative bias in the short 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 marginally above its reference line while momentum oscillator
Stochastic has turned negative indicating negative bias.
The trend deciding level for the day is 10815. If NIFTY trades above this level then we may witness a
further rally up to 10845-10895-10925 levels. However, if NIFTY trades below 10815 levels then we may
see some profit booking initiating in the market, which may correct up to 10765-10735-10680 levels

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