Daily Technical Report
May 18, 2012
Sensex (16070) / NIFTY (4870)
Exhibit 1: Nifty Daily Chart
Yesterday, indices opened marginally higher and
moved upwards during the initial part of the session.
However during the second half, strong selling
pressure in Capital Goods, Consumer Durables,
Banking and Auto stocks resulted in loss of all initial
gains. FMCG, Realty and Oil & Gas counters were
among the major gainers. The advance to decline
ratio was in favor of declining counters (A=1340
Formation
The 200-day SMA (Simple Moving Average) and
20-day EMA (Exponential Moving Average) have
now shifted to 16920 / 5092 and 16940 /
5072, respectively.
The daily ‘Stochastic’ momentum oscillator is
Source: Falcon
signaling a positive crossover.
Indices have now tested 16430 / 4950 level,
which is the 61.8 % Fibonacci Retracement level
of the rise from
15135
/
4531 (Low on
December 23, 2011) to 18524 / 5630 (High on
February 22, 2012).
Actionable points:
Trading strategy:
View
Neutral
Resistance Levels
4922 - 4976
Yesterday, with an optimistic start markets showed
Support Levels
4837 - 4766
some early signs of a bounce back. We have been
witnessing since past few sessions that every intraday
rally loses momentum and gets sold into after nearing
important resistance levels. Likewise, yesterday too
indices drifted off sharply from the day high. Going
forward, we continue to mention that traders should
avoid creating long positions until we observe a
'Higher Top Higher Bottom' formation in hourly chart.
Only a move beyond 16390 / 4957 would confirm
the beginning of a pullback in the strong downward
slide of the index and we may then witness a rally up
to 16447 - 16725 / 4976 - 5050 levels. Conversely,
the support levels remains around the 15974 - 15860
/ 4837 - 4766.
1
Daily Technical Report
May 18, 2012
Bank Nifty Outlook - (9154)
Yesterday, Bank Nifty opened on a flat note and
Exhibit 2: Bank Nifty Daily Chart
traded with extreme volatility throughout the day. The
index tested the mentioned support and resistance
levels of 9105 and 9310 respectively. The “Bullish
Hammer” candlestick pattern mentioned in our
previous report still holds its significance. We are
witnessing positive crossover in “Stochastic”
momentum oscillator on the daily chart. Also at this
juncture we are witnessing a “Spinning Top”
candlestick formation which suggests indecisiveness
prevailing at current levels. Going forward, only if the
index manages to sustain above yesterday’s high of
9328 then it is likely to rally towards 9430 - 9500
levels. On the downside 9105 - 9047 are likely to act
as support in coming trading session. A close below
the low of the
9047 would negate the bullish
implication of the Hammer pattern and may lead to
further sell off in the Index.
Actionable points:
Source: Falcon
View
Neutral
Resistance Levels
9328 - 9430
Support Levels
9105 - 9047
2
Daily Technical Report
May 18, 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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