Technical Research | November 16, 2011
Daily Technical Report
Sensex (16883) / NIFTY (5069)
Exhibit 1: Nifty Daily Chart
We witnessed a gap down opening in yesterday’s session
and indices corrected sharply during the second half the
session. As a result, markets closed below the support level
of 16900 / 5085. On the sectoral front, the Realty, Capital
Goods and Power counters were among the major losers.
There was no sector on gaining side. The advance decline
ratio was strongly in favor of declining counters (A=629
Formation
• We are observing a negative crossover in Daily “5 & 20
EMA”.
Source: Falcon
Trading strategy:
Actionable points:
After a marginal gap down opening, indices faced extreme
selling pressure during the second half which dragged
View
Bearish
indices sharply below the immediate support level of 16900
Negative below
5052
/ 5085. We are now witnessing a negative crossover in
Expected targets
5011 / 4944
Resistance level
5159
Daily “5 & 20 EMA” which indicates possibility of further
downside. Going forward, if Indices sustain below
yesterday’s low of 18837 / 5052 then they are likely to test
16669 / 5011 level. A daily closing below 16669 / 5011
may attract further selling pressure, which may drag indices
towards the next support levels of 16460 - 16300 / 4944 -
4890. On the upside, yesterday’s high of 17172 / 5159
level is likely to act a resistance in coming trading session.
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Technical Research | November 16, 2011
Bank Nifty Outlook - (9086)
Exhibit 2: Bank Nifty Daily Chart
Bank nifty opened near our mentioned support level of
9254 and traded in a narrow range during the first half
of the day. However, in the second half, extreme selling
pressure led the index to close near day’s low. We are
observing that the Daily momentum oscillator viz., the
Stochastic is placed in extreme oversold condition.
Therefore, possibility of a bounce back cannot be ruled
out. In this scenario, the pullback may extend to 9245 -
9308 levels. On the other hand, if Bank Nifty sustains
below yesterday’s low of 9062 then selling pressure is
likely to continue and the index is then likely to test 8915
- 8626 levels.
Actionable points:
View
Neutral
Resistance Level
9309
Support Levels
9062 - 8915
Source: Falcon
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Technical Report
RESEARCH TEAM
Shardul Kulkarni
Head - Technicals
Sameet Chavan
Technical Analyst
Sacchitanand Uttekar
Technical Analyst
Mehul Kothari
Technical Analyst
Ankur Lakhotia
Technical Analyst
Research Team: 022-3952 6600
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