Nifty Technical Outlook for 21.01.2016

Bottom-line:

 After staging a smart comeback in the previous trading session, the Indian equity market once again ended with modest losses on Wednesday. Nifty is heading towardsour crucial support level i.e.7269 and we believe that Nifty may find support in that area. If it fails to respect the 7269 mark on the closing basis it may extend its downfall towards 7100levels. On the other hand, 7540 will act as a strong resistance level.

 

If one were to go by the volume data, the down move seen on the index is justified by its increased in volume.

 

Technically on a daily chart, Nifty once again started making lower low and lower high pattern, from last two trading session, suggesting it has potential down move in upcoming trading sessions, indicating negative view. Tracking Bollinger Band Nifty is ridding the ‘Lower Bollinger Band’ and also the bands are widening, indicating negative view.

Momentum oscillator RSI turned down, have more room left on downside, which add more bearishness for the index.

However for today, Nifty might attempt to bounce back towards 7340-7380 levels. This move we at Dalal Times call it’s as a “Bull’s Trap” is to be avoided. Such bounce can be used to sell Nifty on the higher side, for the said target.

 

 

Intraday Trader:

 

Day traders can trade the market on the downside till 7200. For intraday levels, kindly refer to Today's Trade section.

 

Positional Traders: 

 

For the ones who have built short positions on Nifty, they can hold with a stop loss at 7540 levels on a closing basis. For those who are yet to take a short position, we suggest them to build it around 7340-7380 levels

SBIN Technical Recommendations

SBIN on a weekly chart, stock price is making lower low, higher low pattern, suggesting it may move further down, also stock price i.e. 184.30 is trading near the 52 week low i.e. 181, indicate negative outlook for the stock. 

 

On the BB front price i.e. 184.30 are ridding the ‘Lower Bollinger Band’ and also the bands are widening, thus indicating negative momentum. Momentum oscillator MACD has given a negative crossover, RSI is at 48 moving southward, have more room left on downside, which add more bearishness for the stock price.

 

Looking towards the chart study, we believe any trade below 52 week low i.e. 181, stock will further fall towards 170, 165 levels, where else 214 will act as a strong resistance. 

 

For the one who build long position, they can hold with a stop loss at 145 levels or add more at 145-155 levels.

IDBI Technical Recommendations

IDBI on a weekly chart, stock price is making lower low, higher low pattern, suggesting it may move further down, also stock price i.e. 60.80 is trading near the 52 week low i.e. 52.30, indicate negative outlook for the stock. 

 

On the BB front price i.e. 60.80 are ridding the ‘Lower Bollinger Band’ and also the bands are widening, thus indicating negative momentum. Momentum oscillator MACD has given a negative crossover, RSI is at 37.00 moving southward, have more room left on downside, which add more bearishness for the stock price.

 

Looking towards the chart study, we believe stock has major support at 52.30, which is the 52 week low, any trade below 52.30, stock may extend its fall towards 40 level. Where else 90 will act as a strong resistance. 

 

For the one who build long position, they can hold with a stop loss at 52 levels.

Nifty Technical outlook for 13/01/2016

Bottom Line: - 

On Tuesday Nifty achieved our target levels and closed below the crucial support level i.e. 7540, indicate ongoing selling pressure will continue into the market. Market continue its negative for second consecutive trading session closing at 7510.30, down with 53.55 points.

 Technically Nifty closed below the neckline of a bearish Head & Shoulder pattern and also below its major support (7540), if nifty continue closed below 7540 for at least 2 trading session, most possibility index will extend its legs towards 7400 levels, which is the next support level, further 7100 levels.

Tracking Bollinger Band Nifty is ridding the ‘Lower Bollinger Band’ and also the bands are widening, indicating negative view.  Momentum Oscillator RSI & MACD is also moving southward direction, which add more bearishness for the index. 

For Bulls to come back for short term, Nifty have to close above 7560, which would provide a pullback rally in the near term.

For today, Nifty is likely to continue its fall towards 7400 levels. On the other hand, 7680 will act as an resistance levels.

Intraday Trader:

Day traders can trade the market on the downside till 7450, for intraday levels, kindly refer to Today's Trade section.

Positional Traders: 

The intermediate trend on the index still remains down, for the ones who have built short positions on Nifty; they can book part profit or revised their stop loss to 7720 levels, on a closing basis. For those who are yet to take a short position, we suggest them to build around 7520-7540 levels.

Nifty Technical Outlook for 12/01/2016

On Monday Nifty recovered some of its losses after plunging over 90 points in morning trade, closing at 7563.85 down with 37.50 points, indicate ongoing selling will continue into the market.

 

Now Nifty is trading near our crucial support level i.e. 7540 which was mentioned in our previous newsletter and we believe that Nifty may find support in that area. If it fails to respect the 7550 mark on the closing basis it may extend its downfall towards 7420 levels, which is most likely. 

Technically on a daily charts, Nifty is trading below 20 DMA, 50DMA & 100 DMA indicate index has lost the support level, which further move more down. Tracking Bollinger Band Nifty is ridding the ‘Lower Bollinger Band’ and also the bands are widening, indicating negative view.  Momentum Oscillator RSI & MACD is also moving southward direction, which add more bearishness for the index. 

For today, Nifty is likely to continue its fall towards 7420 levels. On the other hand, 7720 will act as an immediate resistance levels.

Technical Report on Capital First

Capital First on a daily chart stock price i.e. 427, is trading above 20 DMA, 50DMA, & 100 DMA indicate price has a support level, ongoiong bullish rally will continue into the market. Moemnetum oscillator RSI & MACD is movoing northward, RSI have more room left on upside, which add more bullishess for the stock price

Observation : Capital First saw a sharp upmove in last month from Rs363 to Rs425. Post that, it witnessed sideways consolidation between Rs424 and Rs405. Recent consolidation took shape of a flag. Flags are considered to be a continuation pattern in nature; we expect the stock to replicate the momentum it had in early December after giving flag breakout in Tuesday’s trade.

Looking towards chart study, stock price will extend its rally towards 462, further 485 levels. On the flip side 380 will act as a immediate support level.