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1. Technical View (Equity)
Daily call
Index CMP % up/dn S2 S1 P R1 R2
Nifty 10,442.20 +0.06% 10355 10400 10445 10490 10540
Sensex 33812.26 -0.49% 33565 33690 33825 33950 34085
Nifty Daily Chart
Comments:
The Nifty50 index opened with an upward gap and traded with extreme volatility for most part of the
session. Nifty closed at 10442 with a gain of 7 points.
On the daily chart index has formed a bearish candle carrying both side shadows representing volatility
however it has continue to form lower High-Low formation indicating weakness. The index is moving in a
lower Top and lower Bottom formation on the hourly chart indicating short term down trend. The chart
pattern suggests that if Nifty breaks and sustains below 10400 levels it would witness selling which
would lead the index towards 10370-10350 levels. However if index crosses above 10460 level it would
witness pullback rally which would take the index towards 10480-10500. Nifty is trading above 20, 50
and 100 day SMA's which are important short term moving averages, indicating positive bias in the
short to medium term. Nifty continues to remain in an uptrend in the short and medium term, so buying
on dips 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 10445. If NIFTY trades above this level then we may witness a
further rally up to 10490-10540-10580 levels. However, if NIFTY trades below 10445 levels then we may
see some profit booking initiating in the market, which may correct up to 10400-10355-10310 levels
Stocks to focus for intraday Long DishTv, Ashokley, Tatamot, Upl, TechM,
Tatachem, Marico, CoalInd
Stocks to focus for intraday Short Ibulhsgfin, CanBk, DivisLab