Today Market Trend 12 November by trifid research

Sensex (20491) / Nifty (6079)

On Monday, our markets opened half a percent lower as indicated by the SGX Nifty. Subsequently, every pullback rally got sold into and as a result, the index went on to close well inside the negative territory. On the sectoral front, the Healthcare, IT and Tech counters somehow managed to close in the green; whereas the Realty, Capital Goods and PSUs were the major culprits. The advance to decline ratio was strongly in favor of the declining counters. (A=1027 D=1358)

Formation

  • The ’89-day EMA’ and the ’89-week EMA’ are placed at 19956 / 5937 and 18988 / 5705 levels, respectively.
  • The ’20-day EMA’ and the ‘20-week EMA’ are placed at 20710 / 6153 and 20022 / 5958 levels, respectively.
  • The monthly momentum oscillators are now positively poised; whereas the daily and weekly momentum oscillators are contradictory.
  • On the monthly chart, we are observing a breakout from the ‘Multiple Resistance Zone’ (on line chart).

Trading strategy:

This was fifth consecutive session where the Nifty closed in the negative territory. Monday’s price action was almost a replica of previous trading sessions. Despite a decent intraday bounce, the index yet again failed to sustain at higher levels. The ‘Upward Sloping Trend Line’ (please refer to the exhibit) mentioned in our previous reports has now been breached. This indicates weakness on the daily chart and increases the possibility of testing 6032 – 5950 levels if the index sustains below yesterday’s low of 6067. The level of 5950 also coincides with the ’89-day EMA’, which can be considered as a significant support for the Nifty. On the flipside, yesterday’s high of 6142 would act as immediate resistance for the index. A sustainable move beyond this level may attract strong buying interest among market participants. In this scenario, 6185 –6289 levels may be re-tested.

Actionable points:

View Neutral

Support Levels 6032 – 5979

Resistance Level 6185 – 6208

Bank Nifty Outlook – (10758)

Yesterday, the Bank Nifty clearly underperformed our benchmark index as the index nosedived post midsession and closed well inside the negative territory. On the daily chart, the Bank Nifty has closed below the Upward sloping trendline (Please refer exhibit). During the session, the index precisely took a support at the Daily ‘89 EMA’ and closed above this level. Hence, going forward, if Bank Nifty sustains below Monday’s low of 10674, then we may see significant downside up to 10500 – 10387 levels. On the flip side, 10951 is an immediate resistance for the bank nifty. A sustainable move beyond this level would open up the possibilities of an up move towards 11067 – 11228 levels.

Actionable points:

View Bearish Below 10674

Support Levels 10500 – 10387

Resistance Level 10951

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