Daily Technical Report
May 10, 2012
Sensex (16480) / NIFTY (4975)
Exhibit 1: Nifty Daily Chart
Yesterday, we witnessed a gap down opening in-line
with other Asian bourses. Subsequently, indices drifted
lower to test mentioned support level of 16430 /
4950, which acted as a decent support for the day.
On the sectoral front, Realty, Metal and Banking
counters corrected sharply for the second consecutive
session whereas FMCG and IT sectors ended in the
positive territory. The advance to decline ratio was
strongly in favor of declining counters (A=936
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.
Indices are trading around
61.8% Fibonacci
Retracement level of the rise from 15135 / 4531
Actionable points:
(Low on December 20, 2011) to 18524 / 5630
View
Bullish Above 5016
(High on February 22, 2012).
Expected target
5125
The Daily chart depicts an ‘Inverted Hammer’
Support Levels
4956 - 4900
and ‘Doji Star’ in Sensex and Nifty, respectively.
Trading strategy:
We witnessed a range bound session after testing the
support level of 16430 / 4950. A minor pull back
towards the latter part of the session led indices to
close around its initial opening level. Hence, we are
observing "Inverted Hammer" and "Doji Star" pattern
in the Sensex and Nifty, respectively. Further, these
patterns have been formed at the mentioned 61.8%
Fibonacci Retracement level. The said pattern will get
activated only above yesterday's high of 16616 /
5016 beyond which the markets may rally further
towards
16945 /
5125 level. On the downside,
yesterday's low of 16423 / 4956 is expected to act as
a decent support in coming trading session. The
negative momentum is likely to resume only on the
violation of yesterday's low. In this case, indices may
slide further towards 16270 - 16165 / 4900 - 4850
levels.
1
Daily Technical Report
May 10, 2012
Bank Nifty Outlook - (9405)
Yesterday, Bank Nifty opened on a pessimistic note in
Exhibit 2: Bank Nifty Daily Chart
line with our benchmark indices and traded in a
narrow range throughout the session. The index found
support near the mentioned support level of 9364
and has managed to give a close well above that. As
the momentum oscillators on hourly and daily chart
continue to give mixed signals, we expect the ongoing
volatility to continue. Also, a clear candlestick pattern
formation does not exist at the current juncture. Thus
on the upside 9572 - 9700 levels are likely to act as
resistance and 9270 - 9205 levels are likely to act as
support in coming trading session.
Actionable points:
View
Neutral
Resistance Levels
9572 - 9700
Support Levels
9270 - 9205
Source: Falcon
2
Daily Technical Report
May 10, 2012
Research Team Tel: 022 - 39357800
DISCLAIMER
This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment
decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should make
such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the companies
referred to in this document (including the merits and risks involved), and should consult their own advisors to determine the merits and
risks of such an investment.
Angel Broking Limited, its affiliates, directors, its proprietary trading and investment businesses may, from time to time, make
investment decisions that are inconsistent with or contradictory to the recommendations expressed herein. The views contained in this
document are those of the analyst, and the company may or may not subscribe to all the views expressed within.
Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and
trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's
fundamentals.
The information in this document has been printed on the basis of publicly available information, internal data and other reliable
sources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as this
document is for general guidance only. Angel Broking Limited or any of its affiliates/ group companies shall not be in any way
responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report.
Angel Broking Limited has not independently verified all the information contained within this document. Accordingly, we cannot testify,
nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document. While
Angel Broking Limited endeavours to update on a reasonable basis the information discussed in this material, there may be regulatory,
compliance, or other reasons that prevent us from doing so.
This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced,
redistributed or passed on, directly or indirectly.
Angel Broking Limited and its affiliates may seek to provide or have engaged in providing corporate finance, investment banking or
other advisory services in a merger or specific transaction to the companies referred to in this report, as on the date of this report or in
the past.
Neither Angel Broking Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from or in
connection with the use of this information.
Note: Please refer to the important `Stock Holding Disclosure' report on the Angel website (Research Section). Also, please refer to the
latest update on respective stocks for the disclosure status in respect of those stocks. Angel Broking Limited and its affiliates may have
investment positions in the stocks recommended in this report.
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.
Registered Office: G-1, Ackruti Trade Centre, Rd. No. 7, MIDC, Andheri (E), Mumbai - 400 093.
Corporate Office: 6th Floor, Ackruti Star, MIDC, Andheri (E), Mumbai - 400 093. Tel: (022) 3952 6600
Sebi Registration No: INB 010996539
4
