Daily Technical Report:30 May 2018

1. Technical View (Equity) Daily call Index CMP % up/dn S2 S1 P R1 R2 10,633.30 -0.52% 10555 10595 10655 10695 10755 Nifty 34949.24 -0.61% Sensex 34725 34835 35035 35150 35345 Nifty Daily Chart Comments: Nifty opened with an upward gap and traded positive in initial half. However profit booking in second half erased most of the earlier gains which led index to close on near the day's low. Nifty closed at 10633 with a loss of 55 points. The daily price action has formed a sizable bearish candle and has also formed an "Engulfing Bearish" - a short term trend reversal pattern. However any follow up down close will confirm the above said pattern. The index is moving in a Higher Top and Higher Bottom formation on the hourly chart indicating short term up trend. The chart pattern suggests that if Nifty crosses and sustains above 10660 levels it would witness buying which would lead the index towards 10700-10730 levels. Important Supports for the day is around 10600 However if index sustains below 10600 then it may witness profit booking which would take the index towards 10570-10550 levels. Nifty is trading below its 20 day SMA’s which indicating negative bias in the short term. Nifty continues to remain in an uptrend in the long term, so accumulation on dips and near major support zone continues to be our preferred strategy. The daily strength indicator RSI and momentum oscillator Stochastic have both turned positive and are above their respective reference lines indicating positive bias The trend deciding level for the day is 10655. If NIFTY trades above this level then we may witness a further rally up to 10695-10755-10795 levels. However, if NIFTY trades below 10655 levels then we may see some profit booking initiating in the market, which may correct up to 10595-10555-10495 levels Stocks to focus for intraday Long Radico, Dabur, Kajariyacer Endurance, Motilalofs, Apollohosp, Stocks to focus for intraday Short Jublfood, Gppl, IciciBank, Divislab, Mphasis, Intellect, Cesc