Daily Technical Report
July 17, 2012
Exhibit 1: Nifty Daily Chart
Sensex (17103) / NIFTY (5197)
Yesterday, the week opened on a flat note in-line with
other global markets. During the first half, indices
managed to hold 20-day EMA level. However, strong
selling pressure in some of the heavyweight Metal and
IT counters led the indices to ultimately close
marginally below 5200 mark. The advance to decline
ratio was strongly in favor of declining counters
Formation
The weekly 61.8% Fibonacci retracement of the
fall from 18524 /5630 (February 22, 2012) -
15749 / 4770 (June 4, 2012) is seen at 17464 /
5302.
On the weekly chart, we are witnessing a
“Downward Sloping Trend Line” resistance near
17687 / 5386 formed by joining the highs of
21109 / 6339 (November 5, 2010) - 18524 /
5630 (February 24, 2012).
A horizontal consolidation band is observed in
the range of 17034 / 5159 and 17635 / 5350.
The ‘20 day EMA’ is placed at 17200 / 5218
level.
Source: Falcon
Actionable points:
Trading strategy:
Despite strong closing of US and European markets
View
Neutral
on Friday, we witnessed a flat opening in yesterday’s
Resistance Levels
5247 - 5267
session. Subsequently, indices witnessed a strong
Support Levels
5189 - 5159
selling pressure near day’s high to close marginally
below 5200 mark. Going forward, indices may find
decent support around the gap area (17135 - 17034
/ 5189 - 5159 levels) formed on 29thJune 2012. This
support zone also coincides with ’20-week EMA’ and
is hence considered as significant. Conversely,
yesterday’s high of 17273 / 5247 may act as an
immediate intraday resistance level. A sustainable
move above this mark may push indices higher to test
17343 - 17467 / 5267 - 5300 levels.
1
Daily Technical Report
July 17, 2012
Bank Nifty Outlook - (10568)
Exhibit 2: Bank Nifty Weekly Chart
Yesterday, Bank Nifty opened on a pessimistic note
and traded with extreme volatility to close near the
lowest point of the day. The momentum oscillators on
the daily chart continue with their sell signal. We
reiterate our view that 10524 level is likely to act as
important support level in coming trading session. The
mentioned level coincides with trend line support
formed by joining the lows of June 6, 2012 - June
19, 2012. A sustainable move below this level would
attract further selling pressure and the Index may drift
lower to test 10440 - 10365 levels. On the upside
10656 - 10690 levels are likely to act as resistance in
coming trading session.
Actionable points:
View
Bearish Below 10524
Expected Targets
10440 - 10365
Resistance Levels
10656 - 10690
Source: Falcon
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Daily Technical Report
July 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
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