Daily Technical Report
May 11, 2012
Sensex (16420) / NIFTY (4966)
Exhibit 1: Nifty Daily Chart
Yesterday, our Benchmark indices opened on a flat
note and traded with extreme volatility throughout the
day to close near the mentioned support level of
16423 / 4956. On the sectoral front, Metal, Auto and
Power counters were among the major losers whereas
Oil & Gas, Consumer Durables sectors ended in the
positive territory. The advance to decline ratio was
strongly in favor of declining counters (A=1239
Formation
The 200-day SMA (Simple Moving Average) and
Source: Falcon
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
(Low on December 20, 2011) to 18524 / 5630
Actionable points:
(High on February 22, 2012).
View
Neutral
We are witnessing positive divergence in “RSI”
Resistance Level
5040
oscillator on hourly charts.
Support Levels
4950 - 4900
Trading strategy:
Yesterday during the initial part of the session, our
indices traded above the high of mentioned "Inverted
Hammer" and "Doji Star" pattern in the Sensex and
Nifty, respectively. However, selling pressure in the
second half dragged the indices to test the support
level of
16423 /
4956 and negated the bullish
implications of the said candlestick patterns. On the
hourly chart, we are witnessing positive divergence in
the “RSI” oscillator, which suggests the probability of a
minor pullback. However the Asian markets are
trading with a strong negative bias and thus a
negative opening for our markets can be expected.
For today’s session we expect the markets to trade in
the range of 16370 / 4950 to 16670 / 5040. The
negative momentum is likely to resume only on the
violation of yesterday's low at 16370 / 4950. In this
case, indices may slide further towards 16270 -
16165 / 4900 - 4850 levels.
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Daily Technical Report
May 11, 2012
Bank Nifty Outlook - (9411)
Yesterday, Bank Nifty opened on a flat note in line
Exhibit 2: Bank Nifty Daily Chart
with our benchmark indices, faced resistance near the
mentioned resistance level and managed to close
near the initial opening level. As expected, we
witnessed high volatility during yesterday’s session.
We are now witnessing a “Doji” candlestick pattern
which is a sign of indecisiveness prevailing at current
levels. As a result, we expect the index to trade in a
range and with an underlying negative bias. On the
upside
9580 - 9700 levels are likely to act as
resistance and 9340 - 9270 - 9205 levels are likely to
act as support in coming trading session.
Actionable points:
View
Neutral
Resistance Levels
9580 - 9700
Support Levels
9270 - 9205
Source: Falcon
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Daily Technical Report
May 11, 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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