Daily Technical Report
May 09, 2012
Sensex (16546) / NIFTY (5000)
Exhibit 1: Nifty Daily Chart
Yesterday markets opened on a flat note in-line with
other Asian indices, after a sharp bounce back on
Monday’s session. However, intense selling pressure
on the back of negative sentiment in European
markets led to a close almost at the lowest point of
the day. All sectors corrected sharply during
yesterday’s session. Stocks in the Capital Goods, IT
and Banking space were among the major losers. The
advance to decline ratio was strongly in favor of
declining counters (A=1052 D=1688) (Source
-
Formation
Source: Falcon
The 200-day SMA (Simple Moving Average) and
20-day EMA (Exponential Moving Average) have
now shifted to 16949 / 5115 and 17220 /
5225, respectively.
We are now witnessing a negative crossover in
weekly ‘5 & 20 EMA’.
Actionable points:
View
Neutral
Trading strategy:
Resistance Levels
5125
After seeing a sharp pull back towards 5100 mark on
Support Levels
4988 - 4950 - 4900
Monday’s session, once again markets lost positive
momentum and corrected to close around the 5000
mark. Going forward, Tuesday’s high of 16945 /
5125 level would act as a strong resistance zone. This
level also coincides with the 200 day SMA and thus as
long as indices stay below 16945 / 5125, we are
likely to trade with negative bias. On the downside,
indices may slide towards 16430 / 4950 level if
markets sustain below yesterday’s low of 16502 /
4983. We advise traders to avoid creating fresh long
or short positions.
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Daily Technical Report
May 09, 2012
Bank Nifty Outlook - (9589)
Yesterday, Bank Nifty opened on a flat note and
Exhibit 2: Bank Nifty Daily Chart
traded in a narrow range during the first half of the
session. However in the second half, in line with the
sell-off in the broader market, the index fell and
closed well below the “200 - day SMA” support level.
As mentioned in our previous report that we witnessed
immense volatility throughout the session. Going
forward, Monday’s low of 9480 might provide decent
support to the index. A move and close below 9480
will further intensify the selling pressure and the index
may drift lower to test 9364 - 9270 levels. On the
upside 9780 - 9897 are likely to as resistance in
coming trading session.
Actionable points:
View
Neutral
Support Levels
9480 - 9364
Resistance Levels
9780 - 9897
Source: Falcon
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Daily Technical Report
May 09, 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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