Nifty opened with a gain and remained positive throughout the day, closing up 72 points. The daily chart shows a bullish candle with side shadows indicating volatility. Support is seen at lower levels as buying has occurred over past sessions. A pullback rally could take Nifty to 10,700, but it must sustain above 10,400. Crossing and sustaining above 10,600 could lead to further buying and gains to 10,650-10,700, while a break below 10,550 could cause selling and a drop to 10,500-10,450.

1. Technical View (Equity)
Daily call
Index CMP % up/dn S2 S1 P R1 R2
Nifty 10,584.75 0.69% 10490 10540 10570 10620 10650
Sensex 35162.48 0.85% 34795 34980 35095 35280 35400
Nifty Daily Chart
Comments:
Nifty opened with an upward gap and remained in positive terrain throughout the day. Nifty closed at
10585 with a gain of 72 points.
On the daily chart the index has formed a Bullish candle carrying either side shadows indicating extreme
volatility. Nifty is witnessing buying at lower levels from past couple of sessions which indicates support
at lower levels. A pullback rally can be expected in Nifty in near term which can take Nifty to 10700
levels however it has to sustain 10400 levels which is a strong support for Nifty. The chart pattern
suggests that if Nifty crosses and sustains above 10600 levels it would witness buying which would lead
the index towards 10650-10700 levels. However if index breaks below 10550 level it would witness
selling which would take the index towards 10500-10450. Nifty is trading below 20 ,50 and 100 day
SMAs which are important short term moving averages, indicating negative bias in the short to medium
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 and momentum oscillator Stochastic both are in positive territory and
are above their respective reference lines indicating positive bias.
The trend deciding level for the day is 10570. If NIFTY trades above this level then we may witness a
further rally up to 10620-10650-10700 levels. However, if NIFTY trades below 10570 levels then we may
see some profit booking initiating in the market, which may correct up to 10540-10490-10460 levels
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