Daily Technical Report
June 01, 2012
Exhibit 1: Nifty Daily Chart
Sensex (16219) / NIFTY (4924)
Yesterday, despite extremely weak GDP data, our
markets bounced in the latter half of the day to close
above 4900 mark. The session was less volatile than
previous derivative expiry sessions. On sectoral front,
Auto, Banking heavyweights corrected during
yesterday’s session; whereas Realty and IT sectors
ended on the gaining side. The advance to decline
ratio was strongly in of declining counters (A=1184
Formation
The 200-day SMA (Simple Moving Average) and
20-day EMA (Exponential Moving Average) have
now shifted to 16800 / 5070 and 16429 /
4980, respectively.
The ‘20-Week EMA’ is placed at 16930 / 5130
level.
Source: Falcon
Indices have taken a support near 16113 /
4886 level, which is the
61.8
% Fibonacci
Retracement level of the rise from 15847 / 4804
(Low on 23rd May, 2012) to 16544 / 5020 (High
Actionable points:
on 29th May , 2012).
View
Buy Above 4949
The candlestick pattern on the weekly chart
Expected targets
4982 - 5020
represents another bullish “Hammer”.
Support Levels
4883 - 4850
Trading strategy:
Yesterday, once again indices opened lower in-line
with negative global cues. Despite the weakest GDP
growth data since March 2003, the indices bounced
from lower levels to close well above the 4900 mark.
We are observing that the market has taken support
near an important Fibonacci retracement support
level (16113 / 4886) and the possibility of a further
upside cannot be ruled out. Going forward, we expect
a rally towards 16429 - 16544 / 4982 - 5020 levels,
once the Index sustains above yesterday's high of
16278 / 4949 level. Conversely, yesterday's low of
16086 / 4883 may provide decent support for the
markets.
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Daily Technical Report
June 01, 2012
Exhibit 2: Bank Nifty Daily Chart
Bank Nifty Outlook - (9441)
For the second consecutive session, Bank Nifty
opened with a downside gap and traded in a narrow
range throughout the day. The index found support
near the mentioned level of 9370 and bounced back.
The momentum oscillator “Stochastic” on the daily
chart continues with its sell signal. The negative
crossover in “RSI - Smoothened” oscillator on the
hourly chart mentioned in our previous report is still
intact. However, it is about to enter the oversold
territory. We are also witnessing a “Spinning Top”
candlestick pattern, which is a sign of indecisiveness
prevailing at current levels. Thus we expect range
bounce activity in the coming session. On the upside
9520 - 9564 levels are likely to act as resistance and
9360 - 9270 levels are likely to act as support for the
day.
Actionable points:
View
Neutral
Source: Falcon
Resistance Levels
9520 - 9564
Support Levels
9360 - 9270
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Daily Technical Report
June 01, 2012
Research Team Tel: 022 - 39357800
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Research Team
Shardul Kulkarni
-
Head - Technicals
Sameet Chavan
-
Technical Analyst
Sacchitanand Uttekar
-
Technical Analyst
Mehul Kothari
-
Technical Analyst
Ankur Lakhotia
-
Technical Analyst
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