Nifty Index Chart Analysis

Indian stock markets kick started the first week of festive month of October on a positive note with the six-member Monetary Policy Committee led by newly-appointed RBI Governor Urjit Patel took the country's first collective interest-rate decision to cut the repo rate to 6.25 per cent. But, later the stocks succumbed to pressure on account of profit booking at higher levels mainly led by IT stocks ahead of earnings of the IT majors like TCS and Infosys. On the other hand, auto stocks ended in positive terrain on the strong hopes of good sales ahead of the festive season followed by energy and metal stocks which offered support to markets at the lower levels.

On the weekly chart, after forming a shooting star candlestick pattern near to the swing high levels of 8968.70, Nifty entered into a consolidation phase for the next couple of weeks. However, a long bear candle was formed on September 30, 2016. A long bear candle has been followed by an inside candle with upper shadow which indicates a strong tussle between the bulls and bears though the bears did manage to take some advantage. Now going forward the zone of 8510-8550 is a key support for the Nifty. A decisive move below this support zone will open up for a correction up to the level of 8400 and lower. On the upside, the level of 8810 is acting as a strong barrier for the bulls. Hence, a move above the level of 8810 will provide momentum to the bulls and its likely to scale up to levels of 9000-9100.The weekly RSI is quoting around levels of 60.

Nifty Index Daily Chart Analysis

Nifty after registering a swing high of 8968.70 levels, has entered into a sideways to corrective phase. During this period, Nifty is unfolding a sequence of lower top lower bottom pattern. In the last week or so, Nifty has faced stiff resistance around the levels of 8800-8830 which also happens to be 61.8 per cent retracement level of the down move from the high of 8968.70 to low of 8555. On the daily chart on October 7, 2016, Nifty has formed a potential ‘Hammer' Candle with the open and high being the same, this hammer formation is considered as less bullish. On the other hand, Nifty is unfolding a reversal pattern form after an uptrend i.e. ‘Head and Shoulder' pattern and the neckline of this pattern stands around the levels of 8550-8515. A decisive breach of the neckline will open up for correction up to the levels of 8400 and 8320. On the higher side, the zone of 8800-8830 will act as a stiff resistance. A decisive close above this zone will give an upper hand to the bulls and the bulls in this case will likely to touch the levels of 9000-9100.
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Stock Recommendations

ABAN OFFSHORE LTD

Buy … CMP@Rs.253

BSE Code: 523204  SL: Rs.230 (CLS)

Target1: Rs.277  Target2: Rs.290



Aban Offshore stock is currently trading at Rs.255.Its 52 week high/low stands at Rs.257/ Rs.142 and have been clocked on, October 10, 2016 and February 12, 2016. From the last few trading sessions, the stock witnessed massive up moves from the lower levels of Rs.190-200. Recently the stock was given bullish crossover after it crossed the technical levels of Rs.211 and Rs.213 which are its 100-day and 200-day EMA level. In the current scenario, the stock is forming upward breakout from 'Head and Shoulder topping pattern.' Moreover, in one year weekly chart, the stock has formed bullish engulfing pattern, which is also positive for a medium term perspective. The momentum oscillator RSI is quoting at 65-65 levels, which indicates strength. By calculating all, we recommend buy in Aban Offshore at Rs.255 level with a target of Rs.277 followed by Rs.290 and a stop loss of Rs.230, so traders can initiate buy position with given stop loss.

DCW LTD

Buy … CMP@Rs.35.90

BSE Code: 500117  SL: Rs.29 (CLS)

Target1: Rs.42  Target2: Rs.48



The stock of DCW is currently trading at Rs.35.70 levels. Its 52 week high and low stands at Rs.36/ Rs.19 and was made on October 10, 2016 and February 12, 2016. Recently the stock witnessed upward rally after it broke its technical level of Rs.30. The stock actually witnessed bullish breakout pattern from 'downward sloping' channel, in one year daily chart. On the lower levels, the scrip has vital support around its 100 day EMA level of Rs.28 and 200 day EMA level of Rs.27.In the weekly chart, the stock witnessed bullish 'DOJI' candle, which also confirms strength. Moreover, during last few trading sessions, the stock has been witnessing good volume indicating some buying opportunities.By taking into consideration all the parameters, we recommend buy in DCW at Rs 35.90 level with a target of Rs.42 followed by Rs.48 and a stop loss of Rs.29.(closing price as of Oct 10,2016).