Daily Technical Report
June 05, 2012
Exhibit 1: Nifty Daily Chart
Sensex (15988) / NIFTY (4848)
Yesterday, we witnessed a weak opening on the back
of extremely negative clues from European and US
bourses. Further, markets remained under pressure
for the initial hour of the session. However, indices
bounced back sharply from the lows to close at the
highest point of the day. On sectoral front, Capital
Goods, Realty, Oil & Gas and Banking counters
bounced back sharply; whereas Consumer Durable
and FMCG ended on a losing side. The advance to
decline ratio was strongly in favor of declining
counters
(A=1204 D=1449) (Source
-
Formation
The 200-day SMA (Simple Moving Average) and
20-day EMA (Exponential Moving Average) have
now shifted to 16800 / 5070 and 16360 /
4960, respectively.
The ‘20-Week EMA’ is placed at 16840 / 5100
level.
Source: Falcon
Indices have taken a support near 15860 /
4766 level, which is the
78.6% Fibonacci
Retracement level of the rise from 15135 / 4531
Actionable points:
(Low on December 23, 2011) to 18524 / 5630
View
Bullish above 4861
(High on February 22, 2012).
Expected target
4895 - 4925
The hourly ‘RSI-Smoothened’ oscillator is
Support Levels
4814 - 4770
signaling a positive crossover.
Conversely, yesterday's low of 15748 / 4770 holds
Trading strategy:
as a key support level for the market. A violation of
Indices opened significantly lower during yesterday's
this level may result in a fall towards 15678 / 4695
session to test the 78.6% Fibonacci retracement level
levels.
as mentioned above. Markets found decent support
near this level and bounced back sharply to close at
the highest point of the day. Going forward, hourly
20 EMA placed at 16026 / 4861 would act as an
important resistance level. A sustainable move
beyond this level would further augment the bullish
momentum. In this case, indices are likely to rally
towards 16147 - 4895 / 16240 - 4925 levels.
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Daily Technical Report
June 05, 2012
Exhibit 2: Bank Nifty Daily Chart
Bank Nifty Outlook - (9362)
Yesterday, Bank Nifty opened with a downside gap
but buying interest near support levels led the index to
close in the positive territory. We had mentioned in
our previous that momentum oscillators on the hourly
chart are in an oversold condition and possibility of a
bounce back cannot be ruled out. Looking at the
current chart structure and “Piercing Line” candlestick
pattern on the daily chart we expect volatility in
coming trading session. If the index manages to
sustain above yesterday’s high of 9406 then it is likely
to rally further towards 9493 - 9526 levels. On the
downside 9245 - 9157 levels may act as support in
coming trading session.
Actionable points:
View
Neutral
Resistance Levels
9406 - 9493 - 9526
Support Levels
9245 - 9157
Source: Falcon
2
Daily Technical Report
June 05, 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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