Daily Technical Report
August 07, 2012
Exhibit 1: Nifty Daily Chart
Sensex (17413) / NIFTY (5283)
Yesterday we witnessed a gap up opening on the
back of strong closing in the European as well as US
markets on Friday’s session. Indices then traded in a
very narrow range throughout the session to close
marginally below
5300 mark. The Oil & Gas,
Banking and Auto sectors contributed heavily during
yesterday’s session; whereas FMCG and IT counters
closed with a nominal loss. The advance to decline
ratio was strongly in favor of advancing counters
Formation
The weekly
50% and
61.8% Fibonacci
retracement levels of the rise from 15748 /
4770 (June 08, 2012) to 17631 / 5349 (July 13,
2012) are seen at 16690 / 5059 and 16467 /
4991 levels, respectively.
On the weekly chart, we are witnessing a
“Downward Sloping Trend Line” resistance near
17450 / 5300 formed by joining the highs of
Source: Falcon
21109 / 6339 (November 5, 2010) - 18524 /
5630 (February 24, 2012).
The ’20-day EMA’ and
’200-day SMA’ are
placed at 17110 / 5190 and 16879 / 5100
Actionable points:
levels, respectively.
The positive crossover in daily ‘RSI
-
View
Neutral
Smoothened’ oscillator and ‘5 & 20 EMA’ is still
Resistance Levels
5300 - 5349
intact.
Support Levels
5260 - 5220
Trading strategy:
Considering, the broader picture, a close beyond
Yesterday, after a gap up opening indices maintained
17631 / 5349 level would signal the start of a fresh
their early gains throughout the day and closed firmly
rally. On the downside, yesterday's low of 17313 /
near 5300 mark. Yesterday's rally was mainly led by a
5260 is a crucial support in the near term.
single heavyweight, Reliance Industries. Indices have
now closed precisely below the "Downward Sloping
Trend Line" drawn by joining the highs of 18524 /
5630 (February 22, 2010) - 17631 / 5349 (July 10,
2012). Hence, a sustainable move above this trend
line resistance of 17450 / 5300 would confirm the
breakout and indices then may immediately move
towards 17631/ 5349 level.
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Daily Technical Report
August 07, 2012
Bank Nifty Outlook - (10462)
Exhibit 2: Bank Nifty Daily Chart
Yesterday, Bank Nifty opened with an upside gap and
traded in a narrow range throughout the session. The
index is in trading in the range of 10150 - 10500 for
the last 5 sessions. Thus we reiterate our view that a
sustainable move outside the said range will dictate a
clear direction of the trend. If the index moves above
10500 then it is likely to rally towards 10570 - 10627
levels. On the downside 10354 - 10315 levels are
likely to act as support in the coming trading session.
Actionable points:
View
Neutral
Resistance Levels
10500- 10570
Support Level
10354 - 10315
Source: Falcon
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Daily Technical Report
August 07, 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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