Daily Technical Report
June 06, 2012
Exhibit 1: Nifty Daily Chart
Sensex (16021) / NIFTY (4863)
Monday’s sharp bounce from the important support
level was followed by a gap up opening during
yesterday’s session. Initially, indices rallied higher
towards
4900 mark. However, post midsession,
selling pressure near 4900 dragged indices lower to
test 4850 mark. On sectoral front, Capital Goods,
power and Banking counters ended on a gaining
side; whereas Realty and FMCG corrected during
yesterday’s session. The advance to decline ratio was
in favor of advancing counters (A=1404 D=1288)
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
(Low on December 23, 2011) to 18524 / 5630
Actionable points:
(High on February 22, 2012).
View
Neutral
Resistance Levels
4899 - 4949
Support Levels
4830 - 4770
Trading strategy:
In our previous report, we had mentioned hourly 20-
EMA resistance level of
16026
/
4861. Indices
Conversely, Monday's low of 15748 / 4770 holds as
opened marginally above this level and moved
a key support level for the market. A violation of this
towards the expected resistance level of 16147 /
level may result in a fall towards 15678 / 4695
4895. However, this level proved to be a strong
levels.
resistance for the day and indices corrected sharply to
close near hourly
20-EMA. Going forward,
yesterday’s high of 16138 / 4899 would now act as a
resistance in the near term. A move beyond this level
may result in a rally towards 16278 - 16429 / 4949
– 4982 levels.
1
Daily Technical Report
June 06, 2012
Exhibit 2: Bank Nifty Daily Chart
Bank Nifty Outlook - (9460)
Yesterday, Bank Nifty opened with an upside gap and
traded in a narrow range throughout the session to
close near the initial opening level. The index faced
resistance near the mentioned resistance level of
9526 and retraced back to test 9400 level. We are
witnessing a “Spinning Top” candlestick pattern which
is a sign of indecision in the mind of bulls and bears.
Thus on the upside 9545 levels are likely to act as
resistance and 9380 - 9270 levels are likely to act as
support in coming trading session. A move beyond
9545 in the next 1 or 2 sessions would result in a
bullish “Inverted Head and Shoulder” formation on
the hourly chart. As a result a rally towards 9800 can
be expected, post crossing 9545.
Actionable points:
View
Neutral
Resistance Levels
9545
Source: Falcon
Support Levels
9380 - 9270
2
Daily Technical Report
June 06, 2012
Research Team Tel: 022 - 39357800
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Research Team
Shardul Kulkarni
-
Head - Technicals
Sameet Chavan
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Technical Analyst
Sacchitanand Uttekar
-
Technical Analyst
Mehul Kothari
-
Technical Analyst
Ankur Lakhotia
-
Technical Analyst
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