Daily Technical Report:10 October 2018

1. Technical View (Equity) Daily call Index CMP % up/dn S2 S1 P R1 R2 10,301.05 -0.45% 10210 10255 10325 10375 10445 Nifty 34299.47 -0.51% Sensex 33935 34120 34415 34595 34895 Nifty Daily Chart Comments: Nifty opened with an upward gap and witnessed extreme volatility 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 10301 with a loss of 47 points. On the daily chart index has formed a bearish candle however it manage to maintain higher High-low compare to previous session indicating positive bias. The index is moving in a Lower Top and Lower Bottom formation on the daily chart indicating negative bias. The chart pattern suggests that if Nifty breaks and sustains below 10200 levels it would witness selling which would lead the index towards 10150-10100 levels. However if index crosses above 10430 levels it would witness pullback rally which would take the index towards 10500-10600 levels. 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 is moving downwards and is quoting below its reference line indicating negative bias. However momentum oscillator Stochastic has turned positive from the oversold zone indicating a possible consolidation or an up-move in the near term. The trend deciding level for the day is 10325. If NIFTY trades above this level then we may witness a further rally up to 10375-10445-10490 levels. However, if NIFTY trades below 10325 levels then we may see some profit booking initiating in the market, which may correct up to 10255-10210-10135 levels Stocks to focus for intraday Long Drreddy, Hdfc, Apollohosp, Auropharma, Dmart Stocks to focus for intraday Short Hindunilvr, Titan, Ambujacem, Aplapollo, Cyient