Nifty Daily Technical Analysis Report
Nifty open gap down with a huge gap due to global weakness and vanished our all targets towards downside. Nifty is looking weak on technical data. RSI sloping downwards and come to a level of 35.90. MACD continue making red histogram and now making a bearish crossover on daily chart which is not a good sign for Index in coming days. Super trend is negative and sloping downwards which indicates further fall in Markets. PCR now comes to a level of 0.709 which is a sign of relief as it can be considered in overbought zone and can support Index to hold and bounce back.
Positive factors : 5 DMA is far from the price, Price should go close to 5 DMA, a slight pullback is possible. FII Long comes to historical low i.e 12.01 which also support Index on the level. 15750-15800 is a support zone and a hammer kind of candle can be seen on daily chart which is also a sign of reversal. PCR in oversold zone.
Negative factors : MACD making bearish crossover on daily chart. Closing below 15800 and RSI sloping downwards. Supertrend negative and sloping downwards. Global markets are negative.
Conclusion And Strategy
Market may take support from 15750-15800 and bounce back till 16000. So buying can be done in Index above 15810 for a target of 15990, 16080.
If Index breaches 15700 then Index can be short for a target of 15600, 15523.
STOCK TO BUY : BEML, DAWAAT, TATA CHEMICAL, POLYCAB, HDFC