19 January 2018 Pentad Research Team

NIFTY COMMENTARY
Short term update –Sell on news ! The street did the exact same thing in yesterday's trade. As per our
yesterday's report, that an expectation of a news or a policy change could fuel the morning gap up, and
take Nifty all the way to 10900. The bulls exhausted their buying power after hitting 10887. The index not
only came all the way down to fill the opening gap, but reversed and ended 28 points in green. For today,
we see the index heading to 10865 in the first half of trade. While in the later part, it could decide its further
course above 10865 for a new high near 10900 or a reversal from the same mark. However, the second half
could be choppy as a lot of news flow has been pushed into the market in this week's trade along with a
huge stock specific movement on account of overnight adjustments of GST meet revisions. Also 25% of
Nifty weightage companies are set to come out with their Q3 earning today which could keep the index on
tenterhooks. Overall on the daily charts has given a fresh breakout on Wednesday.

Medium term update --–We are of the view that a close below 10725 (preferably weekly) opens for further
downside on the index on a positional basis. As the markets are getting heated up with holiday mood
having ended, markets have started to gain back its mojo since last week. Participants can be advised to
scale down their leveraged positions if the index closes below these levels.

Our Renko 100 model had a fresh view on the

index and now stands on the bullish side with a
trailing revised stop loss below 10600 on a
closing basis as the index has closed above
the 10800 mark.

Scrip Signal Date of Signal Signal Entry C.M.P. Current

Position
Nifty (Spot) Sell 15-11-2017 10186 10322 -136
Nifty (Spot) Buy 11-12-2017 10322 10817 495