Daily Technical Report
July 18, 2012
Exhibit 1: Nifty Daily Chart
Sensex (17105) / NIFTY (5193)
Yesterday, our benchmark indices opened on an
optimistic note in-line with some of the Asian bourses
but could not sustain at higher levels and closed once
again below the 5200 mark. On the sectoral front,
the correction was mainly seen in Realty, Auto and
Power counters; whereas defensive sectors like, FMCG
and Health Care stood firm during yesterday’s
session. The advance to decline ratio was strongly in
favor of declining counters (A=1048 D=1758)
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).
Source: Falcon
A horizontal consolidation band is observed in
the range of 17034 / 5159 and 17635 / 5350.
Actionable points:
The ‘20 day EMA’ is placed at 17200 / 5218
level.
View
Neutral
Resistance Levels
5247 - 5267
Support Levels
5189 - 5159
Trading strategy:
Despite strong opening, our markets could not sustain
at higher levels and again closed below 5200 mark.
Indices are now moving towards the lower range of
the gap area (17135 - 17034 / 5189 - 5159 levels)
formed on 29thJune 2012. This support zone also
coincides with ’20-week EMA’. Hence, looking at the
weekly chart, our view is that indices may find decent
intraday support around 17135 - 17034 / 5189 -
5159 levels. On the upside, Monday’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.
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Daily Technical Report
July 18, 2012
Bank Nifty Outlook - (10568)
Exhibit 2: Bank Nifty Daily Chart
Yesterday, Bank Nifty opened on a flat note and
selling pressure led the index to close near day’s low.
The momentum oscillators on the daily chart continue
with their sell signal. However, “RSI-Smoothened” on
the hourly chart is placed in oversold zone and hence
the chances of a minor pullback cannot be ruled out.
Going forward, yesterday’s low of 10518 is likely to
act as important support level. A sustainable move
below this level would intensify the selling pressure
and the Index may drift lower to test 10395 - 10300
levels. On the upside 10650 - 10693 levels are likely
to act as resistance in coming trading session.
Actionable points:
View
Neutral
Resistance Levels
10650 - 10693
Support Levels
10395 - 10300
Source: Falcon
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Daily Technical Report
July 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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