Technical Research | December 02, 2011
Daily Technical Report
Sensex (16483) / NIFTY (4937)
Exhibit 1: Nifty Daily Chart
Yesterday, markets opened with a massive upside gap of
nearly 3% on the back of positive global events and then
traded with immense volatility throughout the day. A minor
correction during the second half, led indices to close
marginally below 16500 / 4950 mark. On the sectoral
front, Metal, Banking & Realty counters have contributed
heavily in yesterday’s up move, whereas Health Care ended
with a marginal loss. The advance decline ratio was
strongly in favour of advancing counters (A=1689
Formation
• On the Daily chart, the positive crossover in “RSI -
Smoothened” oscillator is still intact.
Source: Falcon
• We are observing a positive crossover in daily “ADX (9)”
indicator.
Actionable points:
• The Daily “20 EMA” is now placed at 16435 / 4932
level.
View
Neutral
• We are witnessing a “Narrow Range” body formation
Resistance levels
5012 - 5065
Support levels
4916 - 4866
on daily chart.
Trading strategy:
Combining these positive technical evidences, we may
witness a strong positive momentum if indices manage to
Our markets opened significantly higher mainly due to
break and sustain above yesterday’s high of 16718 / 5012.
strong overnight cues from European and US indices.
In this scenario markets are likely to rally towards the next
Subsequently, indices registered a high of 16718 / 5012
resistance levels of 16878 - 16980 / 5065 - 5110.
which almost coincides with the 50% Fibonacci Retracement
level of the fall from 17908 to 15478 / 5400 to 4639. The
“Narrow Range” body formation on daily chart now
indicates uncertainty among the market participants. Thus,
if indices sustain below yesterday’s low of 16430 / 4916,
then they are likely to attract selling pressure which may
drag indices towards 16212 - 16046 / 4866 - 4811 levels.
On the other hand, we are observing a positive crossover in
Daily “RSI
- Smoothened” oscillator and “ADX
(9)”
indicator. In addition, the prices have closed marginally
above “20 Day EMA.
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1
Technical Research | December 02, 2011
Bank Nifty Outlook - (8895)
Exhibit 2: Bank Nifty Daily Chart
Bank nifty opened with an upside gap on the back of
strong global cues and traded in a narrow range
throughout the session to close near the initial opening
level. We are now observing a “Spinning top” candle
pattern formation near
“20 Days SMA” and
50%
Fibonacci Retracement level of the fall from 9914 to
8240. Therefore, going forward, if the index manages to
sustain above yesterday’s high of 9034, then it likely to
enter a strong resistance zone of 9077 to 9275 where we
may witness a consolidation or a sidewas move. On the
downside, a breach of 8821 may attract selling pressure
which may drag indices to fill the gap area of 8822 -
8704 formed yesterday.
Actionable points:
View
Neutral
Resistance levels
9034 - 9275
Support levels
8821 - 8704
Source: Falcon
Stock Recommendations:
Exhibit 3: TATA Steel (Dec.Fut.) Daily chart
Stock - TATA STEEL (December Fut.)
Action - Sell
Last close
` 403
Selling Range ` 403 - 403.50
Stop Loss
` 408
Target
` 392
Justification - On the Daily chart the stock has faced
resistance near its “20 Day SMA “and formed a Japanese
candlestick pattern which resembles a “Shooting Star”. This
is a sign of reversal but requires confirmation in the form of
closing below its low. However, the momentum oscillators in
Source: Falcon
the hourly chart are negatively poised. Hence we advise
selling the stock in the range of
` 403 - 403.50 for a
target of ` 392 .
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2
Technical Research | December 02, 2011
Positive Bias:
Stock Name
5 Day EMA
20 Day EMA
Expected Target
Remarks
Renuka
31.4
38
35
View will change below 29.4
Tata Global
85.0
85.1
92
View will change below 83
Negative Bias:
Stock Name
5 Day EMA
20 Day EMA
Expected Target
Remarks
Idea
95.3
95.9
89
View will change above 98.4
Patni
450
411.5
412
View will change above 473
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3
Technical Research | December 02, 2011
Daily Pivot Levels for Nifty 50 Stocks
SCRIPS
S2
S1
PIVOT
R1
R2
SENSEX
16,257
16,370
16,544
16,658
16,832
NIFTY
4,860
4,898
4,955
4,994
5,050
BANKNIFTY
8,705
8,800
8,917
9,012
9,129
ACC
1,149
1,160
1,173
1,184
1,197
AMBUJACEM
144
146
150
153
156
AXISBANK
943
958
978
993
1,014
BAJAJ-AUTO
1,677
1,690
1,710
1,724
1,743
BHARTIARTL
362
371
383
392
404
BHEL
260
268
282
290
304
BPCL
506
516
533
543
559
CAIRN
302
307
311
316
320
CIPLA
322
326
330
334
338
DLF
212
215
217
221
223
DRREDDY
1,498
1,522
1,560
1,584
1,622
GAIL
388
393
397
402
407
HCLTECH
388
394
400
407
413
HDFC
644
650
657
663
671
HDFCBANK
439
446
457
464
474
HEROMOTOCO
2,009
2,049
2,075
2,115
2,141
HINDALCO
127
129
132
134
137
HINDUNILVR
381
386
394
399
408
ICICIBANK
741
752
764
774
787
IDFC
106
108
111
114
117
INFY
2,599
2,627
2,659
2,687
2,719
ITC
202
203
204
205
207
JINDALSTEL
512
517
524
528
535
JPASSOCIAT
63
64
65
66
67
KOTAKBANK
464
471
480
488
497
LT
1,263
1,279
1,302
1,318
1,342
M&M
707
719
737
748
766
MARUTI
926
944
976
994
1,026
NTPC
163
165
166
168
169
ONGC
256
261
269
275
283
PNB
879
890
901
912
923
POWERGRID
98
99
101
102
103
RANBAXY
406
424
454
473
502
RCOM
72
74
76
77
79
RELCAPITAL
281
285
291
295
301
RELIANCE
786
793
802
808
817
RELINFRA
396
401
409
415
423
RPOWER
86
87
88
89
90
SAIL
82
84
85
87
88
SBIN
1,786
1,805
1,829
1,848
1,872
SESAGOA
183
186
191
194
200
SIEMENS
685
693
703
711
721
STER
101
103
106
109
112
SUNPHARMA
508
516
525
532
542
SUZLON
22
23
24
24
25
TATAMOTORS
179
181
183
185
188
TATAPOWER
91
92
94
94
96
TATASTEEL
391
397
404
409
416
TCS
1,114
1,124
1,137
1,147
1,159
WIPRO
375
381
387
393
400
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
Research Team: 022-3952 6600
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