Daily Technical Report:02 January 2019

1. Technical View (Equity) Daily call Index CMP % up/dn S2 S1 P R1 R2 10,910.10 0.44% 10765 10835 10880 10955 10995 Nifty 36254.57 0.52% Sensex 35745 36000 36140 36395 36540 Nifty Daily Chart Comments: Nifty opened with an upward gap and witnessed consolidation for most part of the session. However last hour pullback action pulled index higher to close near the day's high. Nifty closed at 10910 with a gain of 48 points. On the daily chart the index has formed a Bullish candle with a long lower shadow indicating buying at lower levels. Nifty has closed at its crucial levels of around 10900-10920 and these levels will remain crucial in near term. The index is moving in a Higher Top and Higher Bottom formation on the daily chart indicating sustained up trend. The chart pattern suggests that if Nifty crosses and sustains above 10950 levels it would witness buying which would lead the index towards 10970-11000 levels. However if index breaks below 10850 level it would witness selling which would take the index towards 10800-10750 levels. Nifty is trading above 20, 50 and 100 day SMA's which are important short term moving averages, indicating positive bias in the short to medium term. The daily strength indicator RSI and momentum oscillator Stochastic both are moving upwards and are above their respective reference lines indicating positive bias. The trend deciding level for the day is 10880. If NIFTY trades above this level then we may witness a further rally up to 10955-10995-11070 levels. However, if NIFTY trades below 10880 levels then we may see some profit booking initiating in the market, which may correct up to 10835-10765-10720 levels

2. Stocks to focus for intraday Long Gail, Hdfc, Hdfcbank, Infy, Powergrid Stocks to focus for intraday Short Hindalco, Hindunilvr, M&M, Upl, Indhotel