Technical Research | February 07, 2012
Daily Technical Report
Sensex (17707) / NIFTY (5362)
Exhibit 1: Nifty Daily Chart
Yesterday, we witnessed a gap up opening in-line with
strong global cues and the positive momentum lasted in the
first half of the session. A minor correction during the
second half dragged indices lower to fill the upside gap
created at the opening of the session. On the sectoral front,
Realty, Capital Goods and Metal counters were among the
major gainers, whereas Health care sector ended with a
nominal loss. The advance to decline ratio was in favor of
advancing counters. (A=1855 D=1054) (Source
-
Formation:
• We are now observing a positive crossover in “ADX
(14)” indicator.
• Indices are hovering around “Horizontal Line”
resistance of 17908 / 5400.
• Friday’s candle resembled a “Hanging Man”. This is a
bearish pattern but requires confirmation.
• The “RSI-Smoothened” oscillator on daily chart is
Source: Falcon
placed in extreme overbought territory.
Trading strategy:
Actionable points:
Once again for the fifth consecutive session, our markets
opened on an optimistic note. The liquidity fuelled rally
View
Bearish below 5327
Expected Targets
5290 - 5225
continued to boost prices albeit a small correction from the
Resistance levels
5390 - 5400
day’s highs. We are now observing a Japanese candlestick
pattern which resembles a “Hanging Man”. The said
pattern has a bearish implication but needs a confirmation
in the form of closing below the low of the “Hanging Man”,
which is 17595 / 5327 level. In this scenario, indices may
slide towards 17504 - 17308 / 5290 - 5225 levels. On the
upside, 17830 - 17908 / 5390 - 5400 may act as a strong
resistance zone for the markets.
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1
Technical Research | February 07, 2012
Bank Nifty Outlook - (10269)
Exhibit 2: Bank Nifty Daily Chart
As stated in our previous report, yesterday Bank Nifty
opened with an upside gap and traded in a mentioned zone
of 10170 - 10350 throughout the day. Now, on the Daily
chart, we are witnessing a possibility of negative divergence
in “RSI” oscillator which is coupled with other overbought
momentum oscillators. Hence a chance of minor correction
cannot be ruled out. On the downside, only if Bank Nifty
trades convincingly below yesterday’s low of 10183 then it
can drift towards 10000 - 9928 levels. However, on the
upside resistance of 10350 is likely to remain intact for the
day.
Actionable points:
View
Neutral
Resistance Levels
10350 - 10516
Support Levels
10183 - 10000 - 9928
Source: Falcon
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2
Technical Research | February 07, 2012
Positive Bias:
Expected
Stock Name
CMP
5 Day EMA
20 Day EMA
Remarks
Target
Escorts
81.6
80.2
77.6
86
View will change below 76.5
Negative Bias:
Expected
Stock Name
CMP
5 Day EMA
20 Day EMA
Remarks
Target
Tata Steel
467.25
464.6
435
435
View will change above 480
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3
Technical Research | February 07, 2012
Daily Pivot Levels for Nifty 50 Stocks
SCRIPS
S2
S1
PIVOT
R1
R2
SENSEX
17,476
17,592
17,711
17,826
17,945
NIFTY
5,297
5,329
5,360
5,392
5,422
BANKNIFTY
10,114
10,191
10,261
10,339
10,409
ACC
1,238
1,286
1,320
1,369
1,403
AMBUJACEM
172
176
179
184
186
AXISBANK
1,088
1,099
1,109
1,120
1,129
BAJAJ-AUTO
1,602
1,621
1,634
1,653
1,666
BHARTIARTL
381
385
389
394
398
BHEL
264
268
270
274
277
BPCL
566
570
575
579
584
CAIRN
342
349
355
362
367
CIPLA
345
349
352
356
359
COALINDIA
322
325
329
332
336
DLF
227
231
236
240
245
DRREDDY
1,604
1,625
1,660
1,682
1,717
GAIL
379
384
390
396
402
HCLTECH
450
456
462
469
475
HDFC
686
693
699
705
711
HDFCBANK
492
500
508
516
524
HEROMOTOCO
1,928
1,945
1,969
1,986
2,010
HINDALCO
151
153
155
158
160
HINDUNILVR
368
377
394
404
420
ICICIBANK
911
919
928
937
946
IDFC
135
137
139
142
144
INFY
2,723
2,750
2,779
2,806
2,835
ITC
199
201
202
203
205
JINDALSTEL
548
561
571
584
594
JPASSOCIAT
74
76
78
80
82
KOTAKBANK
508
514
519
526
531
LT
1,347
1,366
1,382
1,401
1,417
M&M
690
700
712
722
734
MARUTI
1,222
1,237
1,251
1,267
1,281
NTPC
173
175
177
179
181
ONGC
276
280
282
286
289
PNB
956
965
973
983
991
POWERGRID
105
107
108
110
111
RANBAXY
440
445
453
458
466
RCOM
91
93
95
96
99
RELIANCE
810
822
836
847
861
RELINFRA
524
536
553
566
582
RPOWER
97
99
101
102
104
SAIL
105
106
107
109
110
SBIN
2,105
2,134
2,161
2,189
2,216
SESAGOA
220
225
230
234
240
SIEMENS
740
760
772
791
803
STER
122
124
125
127
129
SUNPHARMA
525
536
551
562
576
SUZLON
29
29
30
31
31
TATAMOTORS
243
247
250
255
257
TATAPOWER
100
104
109
113
118
TATASTEEL
454
461
469
476
484
TCS
1,162
1,178
1,189
1,205
1,216
WIPRO
418
422
427
432
437
Technical Research Team
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4
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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