Daily Market Technical Trend 28 November

Sensex (20420) / Nifty (6057)

Yesterday, our markets opened on a flat note consideringsubdued global clues. The index then oscillated within anarrow range for the entire session and eventually closed just atad lower than previous close. On the sectoral front, ThePower, Realty and IT pack closed with nominal losses; whereasthe Consumer durables, FMCG and Auto sector ended inpositive territory. The advance to decline ratio was marginallyin favor of the declining counters. (A=1111 D=1362)

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 at20536 / 6099 and 20070 / 5969 levels, respectively.
  • The monthly momentum oscillators are now positively poised; whereas the weekly momentum oscillators are contradictory.

Trading strategy:

Yesterday, the price action was quite range bound and we witnessed the formation of yet another ‘Inside Day’ Japanese candlestick pattern on the daily charts. Since there is no major change in the chart structure, 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 – 6213levels. On the flip side, 6030 – 5970 levels may act as support in coming trading session. Markets are expected to trade with enhanced volatility on account of November month derivative expiry and hence, we advise traders to remain light on positions.

Nifty Daily Chart

Actionable points:

View Neutral

Support Levels 6035 – 5970

Resistance Levels 6124 – 6213

Bank Nifty Outlook – (10899)

Yesterday, the Bank Nifty too opened on a muted note in line with our benchmark index. The price movement was also identical to the Nifty and as a result, we witnessed yet another narrow range body formation near the pullback zone of ‘Downward Sloping Trend line’ (please refer the exhibit). This analysis would remain valid so long as the Bank Nifty remains above the 10750 mark. In the coming trading session, if Bank Nifty manages to sustain above11020, then we may expect the index to re-test 11133 -11208 levels. 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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