Daily Technical Report
July 06, 2012
Exhibit 1: Nifty Daily Chart
Sensex (17539) / NIFTY (5327)
Yesterday, our benchmark indices opened on a flat
note in-line with mixed global cues. Unlike, previous
three trading sessions, we witnessed positive
momentum in the second half of the session which
pushed indices higher to close well above 5300 mark.
On sectoral front, Banking, FMCG and Power
counters were among the major gainers; whereas
Metal and Realty sector remained under pressure. The
advance to decline ratio was strongly in favor of
advancing counters (A=1945 D=954) (Source -
Formation
The 200-day SMA (Simple Moving Average) is
placed at 16810/ 5078 level.
The weekly ‘RSI-Smoothened’ oscillator and ‘5 &
20 EMA’ are now signaling a positive crossover.
Markets have taken support at the Monthly
‘Upward Sloping Trend Line’ and have formed a
‘Bullish Engulfing’ Pattern.
Source: Falcon
Actionable points:
Trading strategy:
Until yesterday’s session, indices were struggling to
View
Neutral
close above 5300 mark. Hence, we witnessed a
Resistance Levels
5386
cluster of narrow range body formations. We had
Support Levels
5263
mentioned the positive placement of ‘ADX
(14)’
indicator in our previous report. The impact of this
technical tool was seen during yesterday’s session as
indices finally moved in favor of the bulls and
managed to give a decent intraday rally. The hourly
chart indicates a "Flag" pattern breakout and thus we
expect further buying interest from market
participants. The resistance level for the day is at
17687 / 5386. Conversely, 17351/ 5263 level may
provide decent support on the downside.
1
Daily Technical Report
July 06, 2012
Exhibit 2: Bank Nifty Daily Chart
Bank Nifty Outlook - (10642)
Yesterday, Bank Nifty opened on a positive note and
gained strength as the day progressed to close near
the highest point of the day. We had mentioned in our
previous report that once, above 10555 level we may
witness a sharp rally towards 10645 - 10830 levels.
We continue to remain optimistic on the index as the
charts in higher degree time frames are still indicating
a further up move. However, considering the
overbought condition on momentum oscillator
(stochastic) on the daily chart, some consolidation or
minor pullback cannot be ruled out. The resistance
levels for the day are at 10740 - 10830 levels. On
the downside 10523 - 10480 levels are likely to act
as support in coming trading session.
Actionable points:
View
Neutral
Source: Falcon
Resistance Levels
10651 - 10740
Support Levels
10523 - 10480
2
Daily Technical Report
July 06, 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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