DAILY STOCK NIFYT TECHNICAL REPORT 08 NOVEMBER

Sensex (20823) / Nifty (6187)

Yesterday, our benchmark index opened quietly considering mixed global cues. After a range bound activity during the first half, the index suddenly surged higher. However, strong selling pressure post the midsession once again pulled our market significantly lower to close in the negative territory. On the sectoral front, the IT and Metal packs somehow managed to close in the positive territory; whereas the Realty, Consumer Durables and Banking counters became the major culprits in yesterday’s sharp intraday fall. The advance to decline ratio was in favor of the declining counters.

Formation

  • The ’89-day EMA’ and the ’89-week EMA’ are placed at 19928 / 5929 and 18958 / 5698 levels, respectively.
  • The ’20-day EMA’ and the ‘20-week EMA’ are placed at 20740 / 6162 and 19988 / 5947 levels, respectively.
  •  The monthly momentum oscillators are now positively poised.
  • On the monthly chart, we are observing a breakout from the ‘Multiple Resistance Zone’.

 

Trading strategy:

During yesterday’s session, we witnessed dual sentiments in the market as the index suddenly surged higher but later the positive momentum fizzled out and the whole rise got sold into. This price action led to a sharp cut of nearly one and halfpercent from the day’s high to close just a tad below the 6200 mark. Considering yesterday’s price action and the placement of daily momentum oscillators, we are of the view that any sustainable move below 6180 may lead to a further correction towards 6132 – 6079 levels. On the flipside, yesterday’s high of 6289 would act as important resistance level for the index.

Actionable points:

View Bearish below 6180

Expected Targets 6132 – 6079

Resistance Level 6289

 

Bank Nifty Outlook – (11055)

Yesterday, the Bank Nifty opened on a flat note and quite similar to our benchmark index, the Bank Nifty too witnessed immense volatility during the session. The index rose sharply just before the midsession, but failed to traverse beyond the hourly ’20-EMA’. Moreover, the selling pressure intensified near day’s high and as a result, the Bank Nifty nosedived to close with more than two percent loss. Going forward, if Bank Nifty sustains below yesterday’s low of 11024 then we may see a further corrective move towards 10951 – 10797 levels. On the flipside, 11400 would act as an immediate resistance for the index. Only closing above this level would open up possibilities for a sharp up move towards 11510 – 11736 levels.

Actionable points:

View Neutral

Support Levels 10951 – 10797

Resistance Level 11400

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DAILY STOCK NIFYT TECHNICAL REPORT 08 NOVEMBER

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