RETAIL RESEARCH 03 Feb 2017

HSL Weekly Insight
Week ahead for Nifty with technicals…

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

RETAIL RESEARCH P age |1

Nifty has shifted into intraday narrow range for the whole session (with in a high low range of around 41 points). RETAIL RESEARCH P age |2 . RETAIL RESEARCH Nifty Daily Timeframe Observation: • Daily Timeframe: Nifty shifted into consolidation for second consecutive session today and closed the day higher by around 06 points. • The positive sequence of higher tops and bottoms is intact in Nifty as per daily timeframe chart and present upmove could be in line with the formation of new higher top of the sequence. • The upper area of daily RSI around 72-73 level has been important swing high for the last one year. • Daily 14 period RSI has turned flat around 72-73 levels and a negative divergence pattern in Nifty/RSI seems to have started to form. This pattern is displaying an inherent strength in the upside momentum and indicates more upside for near term. The underlying trend remained choppy for the day. But. the higher top has not been confirmed yet. • A high wave type candlestick patterns have been formed in the last couple of sessions. as the RSI has turned down sharply for many occasions from this area in past. This expected pattern could mean minor correction for the market in the next few sessions. • One day weakness/downward reversals have been lacked with follow-through moves so far. before showing further upmove. • After opening with flat note today. the indications of this momentum oscillator is suggesting a possible dip in RSI down to 65 levels (from the current reading of 73 levels). post sharp upmove of 1st Feb (Union Budget). • Over the last one month we observe formation of more no of long bull candles on the way up and relatively small bear candles during declines or minor corrections. which is suggesting a temporary halt in upside momentum. Hence.

which is connected from the important top of 9119-March 2015). this is showing a significance of the area 8550-8500 levels-green line. as Nifty witnessed sharp upside bounce back this intra week from near this support area. Hence. • Previously. • Weekly momentum oscillator like 8 period MACD has moved up and it is now showing positive crossover signal from near its equilibrium line (MACD line cutting above its signal line). Nifty continued with follow through upmove during this week and closed the week higher by around 1. RETAIL RESEARCH P age |3 . RETAIL RESEARCH Nifty Weekly Timeframe • Weekly Timeframe: After showing sharp upmove during last week. which is indicating an emergence of buying interest during intra-week dips. as per the concept of change in polarity. This hurdle could encountered around 8925 levels for the next 2-3 weeks.15%. • Bull candle has been formed this week with long lower shadow. • The important area of 8500-8550 levels (green dashed horizontal line) has come into play again during this week. • Next important resistance/target for the market could be a down sloping trend line (orange dashed line. • Nifty showing sharp upside bounce back this week from near that support is however validating the upside breakout of the said resistance during last week (long bull candle-later part of Jan). as per w-o-w basis. the area of 8550-8500 levels have acted as a significant support/resistance band for the market in past and have led to formation of long range candles (both bull and bear candles-marked in X). • This is positive indication for the market as per larger degree and such positive crossover formation in MACD after long time is suggesting more upside to come for near term. This is positive indication.

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Research analyst has not served as an officer. especially. We also certify that no part of our compensation was. or perform broking. The views. It should not be considered to be taken as an offer to sell or a solicitation to buy any security. state. RETAIL RESEARCH Summing Up: • The underlying trend of Nifty as per smaller and larger timeframe is up and some more upside is likely for the next couple of weeks. If this report is inadvertently send or has reached any individual in such country. RETAIL RESEARCH P age |4 . employees may have various positions in any of the stocks. reproducing or for distribution to or use by. the values of which are influenced by foreign currencies effectively assume currency risk. wherever mentioned. This document may not be reproduced. This report is not directed to. In addition. printing. Such information has not been independently verified and no guaranty. INH000002475. 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