Nifty Daily

LONG%	SHORT%
92%	8%

Position Sizing model - Long % = percentage of indicators bullish v/s Short % = number of indicators bearish, Including both daily and weekly time frames.

NIFTY
TIME	TREND	Up Level	Down Level
Short term trend	Up	11030	10508

Nifty is close to testing the 20 day moving average again today which is near 10,508. While anticipated the decline in banking stocks to retest the low, I did not think nifty would do so to, and that came mostly on the back of reliance. The 5% move on its AGM date may be a rare event but a part of the new volatility regime where big moves are being seen everyday like the 15% jump in Wipro today something also not seen since the height of the tech bubble. Expect sector rotation to continue and thus the index itself should hold the 20 day average like it did in June and continuing to minor wave v higher towards the 11,000 Mark. 

The intraday volatility resulted in nifty touching the rising trendline from the March bottom in the last hour. This support is that 15,580, holding which the move up should continue.

The swing with moved up to 26 indicating a reduction in the downward momentum.

BANK NIFTY
TIME	TREND	Up Level	Down Level
Short term trend	Down	21842	20926

The daily momentum is almost back to 0 and so most of the selling is done on bank nifty however stock specific declines may continue as the results season takes in and you may have to remain alert to result dates for banking and financial stocks. Immediate support is a 21,270 followed by 20,926. The recovery in private nifty therefore may be slower initially.