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1. Technical View (Equity)
Daily call
Index CMP % up/dn S2 S1 P R1 R2
Nifty 11,657.05 -0.69% 11345 11500 11770 11925 12200
Sensex 38811.39 -0.76% 37725 38265 39195 39740 40670
Nifty Daily Chart
Comments:
Nifty opened on a strong note with an upward gap and registered a new high at 12041 levels; however
profit booking at higher levels dragged it lower to close in red. Nifty closed at 11657 with a loss of 81
points.
The daily price action has formed a sizable bearish candle and has also formed an "Engulfing Bearish" - a
short term trend reversal pattern. However any follow up down close will confirm the above said
pattern. The index is moving in a Higher Top and Higher Bottom formation on the daily chart indicating
sustained up trend. The chart pattern suggests that if Nifty crosses and sustains above 11710 level it
would witness buying which would lead the index towards 11740-11800 levels. However if index breaks
below 11610 level it would witness selling which would take the index towards 11580-11550. 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 is moving upwards and above its reference line indicating positive bias.
However momentum oscillator Stochastic has turned negative from the overbought zone indicating a
possible consolidation or a down move in the near term

2. The trend deciding level for the day is 11770. If NIFTY trades above this level then we may witness a
further rally up to 11925-12200-12355 levels. However, if NIFTY trades below 11770 levels then we may
see some profit booking initiating in the market, which may correct up to 11500-11345-11075 levels
STOCKS IDEAS FOR THE DAY
Company Name BUY/SELL RANGE Stop Loss Target
ZEEL BUY(Above) 365 360 370-376
MGL BUY(Above) 881 875 887-895
Note- Stocks Ideas are based on previous day’s close and are activated only if they trade in buy/sell range.