Occurrence of consecutive Doji’s reflects the ongoing mood of the market. Neither the bulls nor the bears are confident at the current juncture. Increasing IV’s (Implied volatility) & PCR at 1.30 coupled with the resistance faced around the 61.8% (10340) & 78.60% (10405) retracement zone of the previous down move highlight a good probability of the trend eventually turning in favor of the bears. Highest CE OI remains firm at 10,500 while PE OI around 10,300 could be a make or break level for the expiry. The above setup is indicating the upside to remain capped & we believe that pullback should be utilized to create fresh shorts with a provisional stop loss above 10,588 (On closing basis) with an expectation of a move towards the lower end of the weekly megaphone pattern placed near 10,000-9,940.
ICICI BANK - Sell
CMP: Rs 320
Stop Loss: Rs 331
Target: Rs 295
Breakdown from a ‘Rising Wedge’ formation on the daily scale coupled with a divergence on the daily RSI indicates weakness to be witnessed in the coming sessions. Shorts could be created within the current range of 320-325 with a stop above 331 for a pattern target of 295.
ECLERX - Buy
CMP: Rs 1,308
Stop Loss: Rs 1274
Target: Rs 1410
Breakout from the ‘Falling Wedge’ formation on the weekly scale & the crossover within the momentum averages augur well for a continuation move on the upside. Trading longs could be considered with a stop below 1274 for an initial target upto 1410.
Disclaimer: The analyst may have positions in any or all the stocks mentioned above.