Daily Market Nifty Technical Report 18 November

Sensex (20399) / Nifty (6056)

On Thursday, our benchmark indices opened on a positive note in-line with the cheerful mood seen across the globe. The index then rallied further to post intraday gains of nearly two percent. However, strong selling pressure post midsession trimmed half of gains to conclude the session one percent higher than previous close. On the sectoral front, the Auto, Banking and Realty sectors were the highest gainers; whereas the Healthcare and IT packs closed with nominal losses. The advance to decline ratio was strongly in favor of the advancing counters. (A=1420 D=1068)(Source–www.bseindia.com)

Formation

  • The ’89-day EMA’ and the ’89-week EMA’ are placed at 19978 / 5943 and 18986 / 5705 levels, respectively.
  • The ’20-day EMA’ and the ‘20-week EMA’ are placed at 20602 / 6119 and 20014 / 5955 levels, respectively.
  • The monthly momentum oscillators are now positively poised; whereas the weekly momentum oscillators are contradictory.

Trading strategy:

Finally, on Thursday, the bulls managed to snap the seven straight sessions losing streak and the nifty has closed convincingly above the 6000 mark. During the week, the Nifty moved towards the strong support zone of daily ’89 EMA’ placed at 5942 level. Historically this moving average has proved to be a very crucial support for the market. Going forward, any sustainable move below this level (5942) would augment the pessimism in our market. In this scenario, the Nifty may slide towards 5825 – 5700 levels. This would also pose a significant bearish threat to the higher degree weekly and monthly chart structure. On the upside, the immediate resistance is seen around 6120, which is the daily ’20-EMA’ level. Only if the index manages to stay beyond 6120, then we may expect an immediate up move towards 6207 – 6250 levels. Considering current price structure, we advise traders to adopt a stock specific approach and consider liquidating all Nifty long positions on a closing below 5940 levels.

Actionable points:

 

View Neutral

Support Levels 6036 – 5972

Resistance Level 6109 – 6142

Bank Nifty Outlook – (10811)

Yesterday, the Bank Nifty too opened with a decent upside gap in-line with our benchmark index. The index then accelerated its positive momentum during the initial hour, which pushed the Bank Nifty three percent higher from previous day’s closing. However, the index marginally slipped from the highs towards the latter part and eventually closed with two and half a percent gains. On the daily chart, we are observing that the index has closed a tad below ’20 day EMA’. In technical terms, this moving average is considered as an intermediate resistance. Hence, going forward, any sustainable move below yesterday’s low of 10660 may result in a correction towards 10412. On the flipside, a move beyond move beyond 10892 may attract immense buying interest among market participants. In this scenario, we expect an immediate up move towards 11067 – 11170 levels.

Actionable points:

View Neutral

Support Levels 10660 – 10412

Resistance Level 11067 – 11170

Courtesy: angelbroking

Leave a Reply

Your email address will not be published. Required fields are marked *