Daily Technical Report:17 October 2018

1. Technical View (Equity) Daily call Index CMP % up/dn S2 S1 P R1 R2 10,584.75 0.69% 10490 10540 10570 10620 10650 Nifty 35162.48 0.85% Sensex 34795 34980 35095 35280 35400 Nifty Daily Chart Comments: Nifty opened with an upward gap and remained in positive terrain throughout the day. Nifty closed at 10585 with a gain of 72 points. On the daily chart the index has formed a Bullish candle carrying either side shadows indicating extreme volatility. Nifty is witnessing buying at lower levels from past couple of sessions which indicates support at lower levels. A pullback rally can be expected in Nifty in near term which can take Nifty to 10700 levels however it has to sustain 10400 levels which is a strong support for Nifty. The chart pattern suggests that if Nifty crosses and sustains above 10600 levels it would witness buying which would lead the index towards 10650-10700 levels. However if index breaks below 10550 level it would witness selling which would take the index towards 10500-10450. Nifty is trading below 20 ,50 and 100 day SMAs which are important short term moving averages, indicating negative bias in the short to medium term. Nifty continues to remain in a downtrend in the short term, so exit on small pullback rallies to be our preferred strategy. The daily strength indicator RSI and momentum oscillator Stochastic both are in positive territory and are above their respective reference lines indicating positive bias. The trend deciding level for the day is 10570. If NIFTY trades above this level then we may witness a further rally up to 10620-10650-10700 levels. However, if NIFTY trades below 10570 levels then we may see some profit booking initiating in the market, which may correct up to 10540-10490-10460 levels Stocks to focus for intraday Long Adaniports, Bhartiartl, Reliance, Sbin, Abfrl, Ashokley Stocks to focus for intraday Short Cipla, Ibulhsgfin, Apollohosp, Cub, Indhotel