Daily Technical Report:18 September 2018

1. Technical View (Equity) Daily call Index CMP % up/dn S2 S1 P R1 R2 11,377.75 -1.19% 11305 11340 11405 11440 11500 Nifty 37585.51 -1.33% Sensex 37240 37415 37720 37895 38200 Nifty Daily Chart Comments: Nifty opened with a downward gap and selling pressure throughout the session dragged it lower to end near lowest point of the day. Nifty closed at 11378 with a loss of 137 points. On the daily chart the index has formed a long bearish candle forming lower High-Low compare to previous session indicating negative 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 11340 levels it would witness selling which would lead the index towards 11300-11250 levels. However if index crosses above 11400 level it would witness pullback rally which would take the index towards 11430-11470 levels. Nifty is trading below its 20 day SMA which indicates negative bias in the short 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 11405. If NIFTY trades above this level then we may witness a further rally up to 11440-11500-11540 levels. However, if NIFTY trades below 11405 levels then we may see some profit booking initiating in the market, which may correct up to 11340-11305-11245 levels Stocks to focus for intraday Long Bpcl, Chennpetro Avantifeed, Bharatfin, Canfinhome, Stocks to focus for intraday Short Bajfinance, Coalindia, Titan, Alkem, Amarajabat