Daily Technical Report:05 September 2018

1. Technical View (Equity) Daily call Index CMP % up/dn S2 S1 P R1 R2 11,520.30 -0.54% 11435 11475 11540 11585 11645 Nifty 38157.92 -0.40% Sensex 37840 38000 38260 38420 38680 Nifty Daily Chart Comments: Nifty opened with an upward gap and witnessed consolidation for most part of the session. However last hour selling pressure in second half dragged index lower to close near the day's low. Nifty closed at 11520 with a loss of 62 points. On the daily chart the index has formed a sizable Bearish candle forming lower High-Low compare to previous session indicating negative bias. Selling pressure is seen at higher levels of Nifty which indicates bulls are losing their grip on the index and bears are gaining the momentum which signals weakness ahead. The chart pattern suggests that if Nifty breaks and sustains below 11500 levels it would witness selling which would lead the index towards 11470-11430 levels. However if index crosses above 11550 levels it would witness pullback rally which would take the index towards 11600-11620. Nifty is trading below its 20 day SMA's which indicates negative bias in the short term. Nifty continues to remain in an uptrend in the short and medium term, so buying on dips continues to be our preferred strategy. The daily strength indicator RSI and momentum oscillator Stochastic both are moving downwards and are below their respective reference lines indicating negative bias The trend deciding level for the day is 11540. If NIFTY trades above this level then we may witness a further rally up to 11585-11645-11690 levels. However, if NIFTY trades below 11540 levels then we may see some profit booking initiating in the market, which may correct up to 11475-11435-11370 levels Stocks to focus for intraday Long Hcltech, Tcs, Jubilant, Thyrocare, Piind Stocks to focus for intraday Short Asianpaint, Hdfcbank, Hindunilvr, Icicibank, Kotakbank, M&M, Adaniports