Daily Technical Report
August 17, 2012
Exhibit 1: Nifty Daily Chart
Sensex (17657) / NIFTY (5363)
Yesterday yet again we witnessed a flat opening on
the back of quiet global cues and indices corrected
marginally in the second half to close in the negative
territory. On the sectoral front, the capital Goods, Oil
& Gas and Auto ended in the positive territory;
whereas Metal, Capital Goods and FMCG remained
under pressure throughout the day. The advance to
decline ratio was in favor of declining counters
Formation
On the weekly chart, the indices have precisely
tested the “Downward Sloping Trend Line”
resistance near 17727 / 5386 formed by joining
the highs of 21109 / 6339 (November 5, 2010)
- 18524 / 5630 (February 24, 2012).
The ’20-day EMA’ and the ’200-day SMA’ are
placed at 17284 / 5242 and 16900 / 5100
levels, respectively.
Source: Falcon
A weekly closing above 17727 / 5386 level
would confirm a ‘Higher Top - Higher Bottom’
Actionable points:
formation on the weekly chart after August 28,
2009.
View
Neutral
The candlestick pattern on the daily chart
Resistance Levels
5391 - 5425
resembles a “Shooting star” and signifies
Support Levels
5329 - 5290
resistance near 17727 / 5386 levels.
Trading strategy:
Looking at the past couple of trading sessions, it is
clear that 17754 / 5387 level is proving to be strong
resistance level. Failure to close above this level
(17754
/
5387) in multiple sessions is a clear
evidence of the same. Yesterday too was no
exception. Going forward, the coming trading session
can be decisive as it would dictate the weekly closing
for our markets. For the day, if our markets sustain
above 17764 / 5391, then they are likely to rally
higher to test 17840 / 5425 level. Conversely, 17572
- 17450 / 5329 - 5290 levels may provide decent
support for the day.
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Daily Technical Report
August 17, 2012
Exhibit 2: Bank Nifty Daily Chart
Bank Nifty Outlook - (10427)
We had mentioned a broad trading range of 10240
to 10622. Yesterday, Bank Nifty corrected sharply
during the second half of the session and contributed
significantly to the fall in the broader markets. Going
forward, we are of the opinion that if Bank Nifty
sustains below
10375 level, then the negative
momentum is likely to increase further and in this
scenario, the support level of 10240 may be tested.
Conversely, 10551 - 10641 levels would act as
strong and decisive resistance levels for Bank Nifty.
Actionable points:
View
Neutral
Resistance Levels
10551- 10641
Support Levels
10375 - 10240
Source: Falcon
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Daily Technical Report
August 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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