Daily Technical Report
May 17, 2012
Sensex (16030) / NIFTY (4858)
Exhibit 1: Nifty Daily Chart
Yesterday, we witnessed a very pessimistic start for the
markets as indices opened down with a significant,
1.5% downside gap. This negative momentum
continued for the almost the entire day and a minor
recovery in the end led indices to close marginally
above 4850 mark. On the sectoral front Metal, Auto
and Consumer Durable counters contributed heavily
in yesterday’s fall. None of the sectors ended in
positive territory. The advance to decline ratio was
strongly in favor of declining counters (A=983
Formation
The 200-day SMA (Simple Moving Average) and
20-day EMA (Exponential Moving Average) have
now shifted to 16920 / 5092 and 16940 /
Source: Falcon
5072, respectively.
The daily ‘Stochastic’ momentum oscillator is
signaling a positive crossover.
Actionable points:
Indices have now tested 16430 / 4950 level,
View
Neutral
which is the 61.8 % Fibonacci Retracement level
Resistance Levels
4910 - 4957
of the rise from
15135
/
4531 (Low on
Support Levels
4837 - 4800
December 23, 2011) to 18524 / 5630 (High on
February 22, 2012).
Trading strategy:
We witnessed a massive gap down opening during
yesterday's session on the back of extreme pessimism
across all Asian bourses (mainly observed in Hang
Seng Index) and Rupee closing at an all time low. As
mentioned, the oversold condition of momentum
oscillators does not indicate an immediate reversal.
Thus, only a move beyond 16220 / 4910 would
confirm the beginning of a pullback in the strong
downward slide of the index and we may witness a
rally up to 16390 - 16447/ 4957 - 4976 levels.
Conversely, the support levels are seen around the
15974 - 15860 / 4837 - 4800 mark.
1
Daily Technical Report
May 17, 2012
Bank Nifty Outlook - (9164)
Yesterday, Bank Nifty opened on a pessimistic note in
Exhibit 2: Bank Nifty Daily Chart
line with our benchmark indices and managed to
close below the mentioned range of 9200 - 9700.
The index found support near the mentioned level of
9060 which coincides with
61.8% Fibonacci
retracement of the rise from December 20, 2011 -
February
26,
2012 and bounced back. The
momentum oscillators on the daily chart continue to
remain in oversold condition. We are now witnessing
“Hammer” candlestick pattern formation. The bullish
implication on the mentioned candlestick pattern will
only be seen if the index sustains above yesterday’s
high of 9208. In such a scenario the index is likely to
rally towards 9310 - 9360 levels. On the downside
9105 - 9047 levels are likely to act as support in
coming trading session. The mentioned pattern will be
negated only if the index manages to close below
9047 levels.
Source: Falcon
Actionable points:
View
Neutral
Resistance Levels
9208 - 9310 - 9360
Support Levels
9105 - 9047
2
Daily Technical Report
May 17, 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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