RETAIL RESEARCH 15 Feb 2017

HSL Techno Edge
The update of daily market strategy…

Nagaraj Shetti
nagarajs.shetti@hdfcsec.com
Tel-022-30750021

RETAIL RESEARCH P age |1

 Nifty opened today with weak note and shifted into choppy trend during early part of session. which eventually lead to sharp upside bounce backs subsequently.  Daily RSI has turned down and is now placed at the important upper levels of 60. Need confirmation of further weakness to call this as a reversal.  Previously. Nifty Daily timeframe. Nifty closed the day near the low.  The important immediate support is now placed around 8700 levels (orange dashed uptrend line. Source: ASA Current Observation:  The sideways consolidation pattern of the last 5-6 sessions have finally lead to a sharp weakness in the market today. RETAIL RESEARCH Nifty Trend Support Resistance 8724 Down 8700 8820 Sector with +ve bias Sector with –ve bias Stock with +ve bias Stock with –ve bias FMCG Realty ITC DLF Sharp decline post sideways movement. On RSI slipping/sustaining below 60 levels could mean strengthening of downside momentum in the market. connecting from the bottom of 7893-26th Dec) and a downside breakout of this support could have sharp negative impact ahead. As long as RSI stays above 60 levels. but we need confirmation of follow through weakness by next session to call this as a top reversal pattern. as Nifty slipped into decline by around 67 points in today’s session.  Today’s sharp decline is resembling a top reversal pattern in Nifty as per daily timeframe chart. The sharp weakness triggered during afternoon and the intraday levels recovery was not able to sustain. in the last couple of occasions. the market could make an attempt to show upside bounce back. Nifty showed false top reversal patterns (marked in X). RETAIL RESEARCH P age |2 .

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RETAIL RESEARCH Conclusion & Strategy:  Today’s sharp decline in Nifty is again pointing towards the formation of top reversal pattern. or perform broking. and should not be construed as an offer or solicitation of an offer. etc. and buy or sell the securities of the company(ies) mentioned herein or (b) be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a market maker in the financial instruments of the company(ies) discussed herein or act as an advisor or lender/borrower to such company(ies) or may have any other potential conflict of interests with respect to any recommendation and other related information and opinions. its directors. target price. Such information has not been independently verified and no guaranty. 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In addition. estimates. Any holding in stock – No Disclaimer: This report has been prepared by HDFC Securities Ltd and is meant for sole use by the recipient and not for circulation. We also certify that no part of our compensation was. Building . director or employee of the subject company. or will be directly or indirectly related to the specific recommendation(s) or view(s) in this report.com “HDFC Securities Ltd is a SEBI Registered Research Analyst having registration no.  In case. if Nifty fails to show follow through weakness (below 8700 levels) in the next 1-2 sessions or shows sharp upside bounce back from the lows.