Daily Technical Report
May 08, 2012
Sensex (16913) / NIFTY (5114)
Exhibit 1: Nifty Daily Chart
The week opened on a very pessimistic note as indices
opened significantly lower in-line with global cues.
However, as expected and mentioned, clarification on
GAAR had a significant impact on the Indices and a
bounce towards the latter part of the session led
indices to close on the positive note. On sectoral front,
Capital Goods, Metal and Consumer Durables
counters contributed heavily in yesterday’s sharp
bounce; whereas FMCG, Oil & Gas sectors ended
marginally on losing side. The advance to decline
ratio was in favor of advancing counters (A=1440
Formation
The 200-day SMA (Simple Moving Average) and
Source: Falcon
20-day EMA (Exponential Moving Average) have
now shifted to 17100 / 5120 and 17220 /
5225, respectively.
The ‘20-Week EMA’ is placed at 17200 / 5200
level.
Actionable points:
We are now witnessing a negative crossover in
Bullish Above
View
5125
weekly ‘5 & 20 EMA’.
Expected Targets
5177 - 5210
Indices have now tested 16830 / 5080 which is
Support Level
4988
the 50% Fibonacci Retracement level of the rise
from 15135 / 4531 (Low on December 23,
2011) to 18524 / 5630 (High on February,
2012).
Trading strategy:
Yesterday, markets opened significantly lower on the
back of negative sentiments swaying across global
bourses and subsequently indices slipped marginally
below
5000 mark. However, deferment of
implementation of GAAR by the Finance Minister and
Rupee appreciation during the latter half of the
session led indices to bounce sharply from day’s low.
We are now observing that hourly momentum
oscillators are positively poised. These technical tools
can come into action if indices manage to sustain
above yesterday’s high of 19514 / 5125. In this
scenario, indices may rally towards 17122 - 17200 /
5177 - 5210 levels. Conversely, yesterday’s low of
16513 / 4988 may provide decent support for the
markets.
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Daily Technical Report
May 08, 2012
Bank Nifty Outlook - (9876)
Yesterday, Bank Nifty opened on a flat note and
Exhibit 2: Bank Nifty Daily Chart
drifted below the “200 - day SMA” support level
during the day but managed to give a close well
above this support. During the day the index found
support near its prior swing low of 9509 and bounced
back sharply. Going forward yesterday’s low of 9480
holds significant importance. We expect volatility to
continue as the oscillators on the daily and hourly
chart paint mixed picture. Thus on the upside 9975 -
10140 levels are likely to act as resistance zone and
9695 - 9568 are likely to act as support in coming
trading session.
Actionable points:
View
Neutral
Resistance Levels
9975 -10140
Support Levels
9695 - 9568
Source: Falcon
Positive Bias:
Stock
Positive Expected
CMP
Remarks
Name
Above
Target
View will be
HINDALCO
115.7
116.5
126
negated below 112
2
Daily Technical Report
May 08, 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
Angel Broking Pvt. Ltd.
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