Daily Market Technical Report 29 November

Sensex (20535) / Nifty (6092)

Yesterday, our markets opened on a higher note as indicated by the SGX Nifty in the morning. The index then slipped into consolidation mode and regained positive momentum in the last half an hour of trade. On the sect oral front, barring FMCG pack, all other sectors ended in the positive territory. The Capital Goods, Power and Realty counters were among the major gainers during the session. The advance to decline ratio was strongly in favor of the advancing counters. (A=1442 D=1032)

Formation

  • The ’89-day EMA’ and the ’89-week EMA’ are placed at 20076 / 5967 and 19045 / 5718 levels, respectively.
  • The ’20-day EMA’ and the ‘20-week EMA’ are placed at 20536 / 6099 and 20070 / 5969 levels, respectively.
  • The monthly momentum oscillators are now positively poised; whereas the weekly momentum oscillators are contradictory.

Trading strategy:

Despite a derivative expiry session, we witnessed reasonably range bound price action. As a result, the index managed to protect a decent portion of its early morning gains. We are now observing a cluster of ‘Narrow Range’ body formations on the daily chart. Although, there was a gap up opening yesterday, the chart structure has still remained unchanged and the prices continue to remain in the range of 6124 to 6035.Hence, we reiterate our view that the hourly ’89 EMA’ remains to be a stiff resistance for the Nifty. Only a sustainable close above 6124 would open up bullish possibilities and may push the index towards 6180 – 6213 levels. On the flip side, 6030 –5970 levels may act as support in coming trading session.

Nifty Daily Chart

Actionable points:

View Bullish above 6124

Targets 6180 – 6213

Support Levels 6030 – 5970

Bank Nifty Outlook – (10907)

Yesterday, the Bank Nifty too opened on a positive note in-line with our benchmark index. Considering the entire day’s price action, we can conclude that the Bank Nifty underperformed the benchmark index for the major part of the session. However, the overall price movement was quite narrow and hence, there is no major change in the chart structure. Hence, we continue to reiterate our view that, the Bank Nifty may rally towards 11133 – 11208 levels so long as it manages to sustain above 10750. On the other hand, a breach of 10750 would mean that the downward probabilities of 10630 – 10412 have opened up and long positions should be squared off.

Bank Nifty Daily Chart

Actionable points:

View Neutral

Support Levels 10780 – 10630

Resistance Levels 11133 – 11208

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