• Ongoing weekly 'Megaphone formation' has close resemblance with the ‘Ascending Wedge’ which occurred during the period from July'14 till Mar'15
• First signs of Price - RSI divergence on the weekly scale highlights the diminishing strength of the ongoing upmove & early signs of termination
• On the daily scale the 4-Bar reversal signal indicates the upside to remain capped; while a sustained breach below 10200 could amplify the decline
• We believe that pullback if any towards 10400-10550 should be utilized to create fresh shorts with a provisional stop loss above 10588 (On closing basis) with an expectation of a move towards the lower end of the pattern
• Highest Put OI is at 10200 while 10500 Call OI still remains heavily built up in conjunction with the megaphone pattern resistance
• FMCG & IT could provide some safety net during this highly volatile environment. Hence investors should refrain from longs & remain adequately hedged against their long term bets for the coming weeks ahead
The occurrence of a '4-Bar reversal' pattern since the selling climax formation of 28th Sept 2017 marked the termination
of the upmove which commenced from the lows of 9687.55. The significance of the pattern was affirmed by the
sustained breach of the trend line joining the pattern lows of 27th Sept & 23rd Oct. As the above setup is indicating the
upside to remain capped around 10560, we believe that pullback towards 10400-10550 if any from hereon should be
utilized to create fresh shorts with a provisional stop loss above 10588 (On closing basis) with an expectation of a move
towards the lower end of the pattern placed near 10000-9940.
IT
CNSMTN
FMCG
PSU BNK
REALITY
METAL
MEDIA
PHARMA
AUTO
BANK
11222.5
4775.95
25920.5
4001.45
306.30
3865.70
3186.35
9311.5
11185.5
25498.9
5
3.54%
0.82%
0.50%
0.66%
-2.65%
-1.85%
-0.24%
-5.92%
-1.13%
-0.59%
1920.87
231.25
3038.16
-2,046.07
-263.84
3843.68
-456.51
-667.91
596.92
10-Nov-17
9-Nov-17
8-Nov-17
7-Nov-17
6-Nov-17
3-Nov-17
2-Nov-17
1-Nov-17
31-Oct-17
-529.22
-713.75
-3,838.27
461.47
576.27
-9,690.84
1032.88
1038.31
-531.82
10th November 2017 10309
10550
10501
10413
10364
10275
26272
25962
25385
25074
24498
10th November, 2017
PNBHSG
BRITANNIA
CROMPTON
JBCHEMPHARM
1389.3
4757.9
251.4
299.3
1441
4750
223
287
1520.75
4639
219
294
MCDOWELL
INDIGO
TECHMAH
DHFL
3031.6
1181.85
491
638.4
2813
1185
473
610
2608
1205
431
519
INFRATEL
BANKBARODA
HEROMOTO
426.75
169.8
3605.1
WKLY
DLY
DLY
RISING THREE
HARAMI
DOJI
AUROPHARMA
CENTURYTEXT
BHARATFORG
HAVELLS
740
1345
709.25
501.55
WKLY
WKLY
DLY
DLY
ENGULFING
ENGULFING
BELTHOLD
ENGULFING