Daily Technical Report
May 16, 2012
Sensex (16328) / NIFTY (4943)
Exhibit 1: Nifty Daily Chart
Yesterday, markets opened lower but quickly
recovered despite strong negative cues from
European and US bourses. The positive momentum
lasted till the closing point of the day and indices
closed almost near day’s high. On the sectoral front,
Capital Goods, Metal and IT counters bounced
sharply during yesterday’s session; whereas FMCG
sector ended marginally in the negative territory. The
advance to decline ratio was in favor of advancing
counters
(A=1354 D=1330) (Source
-
Formation
The 200-day SMA (Simple Moving Average) and
20-day EMA (Exponential Moving Average) have
now shifted to 16920 / 5100 and 16940 /
Source: Falcon
5130, respectively.
The daily ‘Stochastic’ momentum oscillator is
signaling a positive crossover.
Actionable points:
View
Neutral
Indices have now tested 16430 / 4950 level,
Resistance Levels
4957 - 5050
which is the 61.8 % Fibonacci Retracement level
Support Levels
4850 - 4800
of the rise from
15135
/
4531 (Low on
December 23, 2011) to 18524 / 5630 (High on
February 22, 2012).
Trading strategy:
After a correction of nearly five consecutive sessions,
yesterday we witnessed a small relief rally. However
today’s opening is likely to be negative on the back of
extremely weak Asian markets. On the Downside,
16000 / 4850 level is expected to act as a decent
support level in coming trading sessions. As we have
been mentioning oversold condition of momentum
oscillators in our last couple of reports, yesterday the
daily 'Stochastic' oscillator is signaling a positive
crossover. It must be noted that the impact of this
technical tool can only be seen if indices cross
Monday's high of 16390 / 4957. In this case, we may
witness extended pull back rally up to 16447 - 16700
/ 4976 -5050 levels.
1
Daily Technical Report
May 16, 2012
Bank Nifty Outlook - (9320)
Yesterday, Bank Nifty opened on a pessimistic note
Exhibit 2: Bank Nifty Daily Chart
and traded in a narrow range throughout the session.
As expected the index traded in the mentioned range
of 9200 - 9700. The momentum oscillators on the
daily chart continue to remain in oversold condition.
We reiterate our view that the index is likely trade in
the range of 9200 - 9700. Within the mentioned
range, 9380 and 9536 levels are likely to act as
resistance. A close below 9200 will result in further
selling pressure and the index is then likely to drift
lower to test 9106 - 9060 levels.
Actionable points:
View
Neutral
Resistance Levels
9380 - 9536
Support Levels
9200
Source: Falcon
2
Daily Technical Report
May 16, 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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