Daily Technical Report
June 20, 2012
Exhibit 1: Nifty Daily Chart
Sensex (16860) / NIFTY (5104)
Yesterday, markets opened on a flat note in-line with
mixed global cues. However, we witnessed a very
volatile session as indices tested both support and
resistance levels followed by a sharp bounce during
the latter half which to close near the highest point of
the day. On sectoral front, Oil & Gas, FMCG and
Health Care counters largely contributed in yesterdays
up move; whereas IT sector ended with a nominal
loss. The advance to decline ratio was marginally in
favor of advancing counters (A=1360 D=1306)
Formation
The 200-day SMA (Simple Moving Average) and
20-day EMA (Exponential Moving Average) have
now shifted to 16800 / 5070 and 16550 /
5019, respectively.
The ‘20-Week EMA’ is placed at 16830 / 5100
Source: Falcon
level.
On the daily chart, indices are trading near the
upper range of ‘Downward Sloping Channel’
Actionable points:
drawn by joining two highs of February 22,
2012 - April 19, 2012 and low of March 7,
View
Bullish above 5114
2012.
Expected targets
5146 - 5190
The positive crossover in weekly ‘RSI’ momentum
Support Levels
5041 - 5015
oscillator is still intact. Also, the weekly ‘3 & 8
EMA’ is signaling a positive crossover.
Trading strategy:
Yesterday, indices opened quietly and initially moved
towards the mentioned support level of 16636 /
5041. This level can now be considered as a strong
intermediate support as the index has bounced off this
level more than twice. On the upside, yesterday's high
of
16890
/
5114 would act as an immediate
resistance. A sustainable move above this level may
push indices higher to test 16968 - 17110 / 5146 -
5190 levels. There is no significant change in the
daily chart structure and we maintain our bullish
stance on the market from a positional trade
perspective. As mentioned in previous reports, we
expect the market to test 17400 / 5270 levels.
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Daily Technical Report
June 20, 2012
Exhibit 2: Bank Nifty Daily Chart
Bank Nifty Outlook - (9786)
Yesterday, Bank Nifty opened on a pessimistic note
and traded with extreme volatility throughout the
session. The index has bounced off the support zone
of 9610 - 9595 and closed near the highest point of
the day. Going forward, we reiterate our view that the
zone of 9610 - 9595 is likely to act as strong support
zone. On the upside 9915 - 10000 levels may act as
resistance in coming trading session. Similar to the
benchmark index, there is no significant change in the
chart structure of the Bank Nifty. However we expect
volatility and substantial movement in the market post
the announcement of the monetary policy for the US
central bank.
Actionable points:
View
Neutral
Resistance Levels
9915 - 10000
Support Levels
9610 - 9595
Source: Falcon
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Daily Technical Report
June 20, 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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