Technical Research | October 24, 2011

Daily Technical Report

Sensex (16786) / NIFTY (5050)

Markets opened marginally higher on Friday’ session and

Exhibit 1: Nifty Daily Chart

traded in a narrow range during the first half of the session.

However, selling pressure intensified during the second half

which dragged indices lower to test daily “20 EMA” which is

placed around 16714 / 5025 level. On the sector front,

Realty, Capital Goods and Metal counters were among the

losers whereas Consumer Durable sector ended with a

marginal gain. The advance decline ratio was strongly in

favor of declining counters (A=1112 D=1682). (Source -

www.bseindia.com)

Formation

• We are observing a positive crossover in Weekly “RSI -

Smoothened” momentum oscillator.

• On the Weekly chart, there is a “Horizontal Line”

resistance at 17256 / 5198 level.

Source: Falcon

• The “20 EMA” on the Weekly chart is now placed at

Actionable points:

17215 / 5172 level.

• On the Daily chart, the “20 EMA” is placed at 16714 /

View

Neutral

5025 level.

Resistance Levels

5177 - 5198

Support Levels

5011 - 4944

(Note: All technical evidences mentioned last week are

almost unchanged; therefore, we continue to mention them

along with a single addition of Daily “20 EMA”)

Trading strategy:

On the other hand, indices have a decent support of Daily

Yet another week ended with a failure of crossing the strong

“20 EMA”, which is now placed around 16714 - 16669 /

resistance zone of 17260 / 5198. We reiterate that the bulls

5025 - 5011 levels. Indices are likely to test 16460 -

are facing a major hurdle of this Weekly “Horizontal Line”

16300 / 4944 - 4890 levels if indices manage to sustain

and “20 EMA” near 17256 / 5198 levels. Therefore, we are

below 16669 / 5011 level. Broadly speaking, indices have

of the opinion that unless we get some strong positive

a trading range of 17256 to 16669 / 5198 to 5011. A

trigger on the global or domestic front, our markets may

violation of this range on either side would lead to a clear

direction of the trend.

not cross this stiff resistance zone. On an optimistic note, a

Moreover, traders should take a note that the markets may

positive crossover in Weekly “RSI - smoothened” oscillator is

react to various global and domestic events in the coming

still intact, which may come into action if indices manage to

week. The decision of the European Union on the EFSF and

cross and sustain above 17256 / 5198 level. In this case,

monetary policy coupled with derivative expiry on Tuesday

indices may rally towards the gap area of 17358 - 17665 /

would lead to increased volatility in the markets.

5230 - 5323 created on August 5, 2011.

Therefore, we advise traders to stay light on positions and

trade with strict stop losses.

For Private Circulation Only |

Technical Research | October 24, 2011

Bank Nifty Outlook - (9695)

Exhibit 2: Bank Nifty Daily Chart

Bank nifty opened with a minor upside gap on Friday’s

session and traded in a narrow range throughout the day to

close in the negative territory. On the Weekly chart, we are

observing a positive crossover in “RSI smoothened”, which

suggests possibility of an upside momentum in coming

weeks, if Bank nifty sustains above yesterday’s high of 9811.

In this scenario, it is likely to rally towards the resistance zone

of 9970 -10030 levels.

On the downside, 9580 level may act as s support for the

day.

Actionable points:

View

Neutral

Resistance Levels

9970 - 10030

Support Level

9580

Source: Falcon

Stock Recommendations:

Exhibit 3: Reliance Infra.(Oct Fut) Daily chart

Stock - Reliance Infra. (Oct.Fut.)

Action - Sell

Last close - ` 399.25

Selling Range - ` 400 - ` 404

Stop Loss - ` 410.65

Target

- ` 384

Justification - On the daily chart, we are witnessing that the

stock has faced a resistance near ` 430 which coincides

with 50% Fibonacci retracement level of the fall from ` 485

to ` 366. Further, on the hourly chart, the stock has given a

bearish “Cup & Handle” pattern break down at ` 401.50.

The placement of moving averages and momentum

oscillators on the daily chart suggests further weakness in

Source: Falcon

the stock. Hence, sell this stock in a range of ` 400 - ` 404

for a target of ` 384 in coming 3 - 4 trading sessions.

For Private Circulation Only |

Technical Research | October 24, 2011

Daily Pivot Levels for Nifty 50 Stocks

SCRIPS

PIVOT

SENSEX

16,577

16,681

16,857

16,961

17,137

NIFTY

4,987

5,018

5,070

5,101

5,152

BANKNIFTY

9,595

9,645

9,728

9,778

9,861

ACC

1,104

1,111

1,119

1,126

1,135

AMBUJACEM

146

148

152

154

157

AXISBANK

1,112

1,120

1,130

1,138

1,148

BAJAJ-AUTO

1,596

1,619

1,637

1,659

1,677

BHARTIARTL

367

372

382

388

398

BHEL

313

317

321

325

329

BPCL

628

636

644

652

659

CAIRN

280

284

287

291

294

CIPLA

284

286

288

289

291

DLF

218

222

226

229

233

DRREDDY

1,489

1,510

1,532

1,553

1,575

GAIL

411

415

419

423

427

HCLTECH

406

409

414

418

422

HDFC

618

626

638

645

657

HDFCBANK

479

483

487

491

496

HEROMOTOCO

1,980

2,016

2,041

2,077

2,102

HINDALCO

118

120

123

124

127

HINDUNILVR

321

323

328

331

335

ICICIBANK

857

864

873

880

890

IDFC

119

120

122

123

125

INFY

2,684

2,703

2,726

2,745

2,768

ITC

201

203

205

206

208

JINDALSTEL

515

523

533

540

551

JPASSOCIAT

KOTAKBANK

458

462

468

472

478

1,267

1,301

1,359

1,394

1,452

M&M

787

795

803

810

818

MARUTI

1,071

1,083

1,100

1,112

1,130

NTPC

167

168

170

171

173

ONGC

261

263

266

268

270

PNB

963

973

985

995

1,007

POWERGRID

100

101

RANBAXY

490

494

499

503

509

RCOM

RELCAPITAL

326

330

336

340

346

RELIANCE

821

828

839

846

857

RELINFRA

389

394

402

407

415

RPOWER

SAIL

104

105

106

107

108

SBIN

1,919

1,934

1,951

1,965

1,982

SESAGOA

200

203

208

211

215

SIEMENS

806

814

820

828

834

STER

112

114

116

117

119

SUNPHARMA

476

482

489

495

502

SUZLON

TATAMOTORS

172

175

180

183

189

TATAPOWER

100

TATASTEEL

422

428

436

442

450

TCS

1,034

1,042

1,051

1,059

1,068

WIPRO

346

350

354

358

362

Technical Research Team

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Technical Report

RESEARCH TEAM

Shardul Kulkarni

Head - Technicals

Sameet Chavan

Technical Analyst

Sacchitanand Uttekar

Technical Analyst

Mehul Kothari

Technical Analyst

Ankur Lakhotia

Technical Analyst

For any Queries, Suggestions and Feedback kindly mail to [email protected]

Research Team: 022-3952 6600

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