Daily Technical Report
May 21, 2012
Sensex (16153) / NIFTY (4891)
Exhibit 1: Nifty Daily Chart
On Friday, our benchmark indices opened almost 2%
lower on the back of weak Asian markets. However
during the second half, we witnessed a strong
recovery from the mentioned support level of 4800
mark. On sectoral front, Banking, FMCG and PSU
counters were among the major gainers whereas
Auto, Consumer Durables and Realty counters ended
on the losing side. The advance to decline ratio was in
favor of declining counters (A=1228 D=1464)
Formation
The 200-day SMA (Simple Moving Average) and
20-day EMA (Exponential Moving Average) have
now shifted to 16860 / 5085 and 16630 /
5037, respectively.
Source: Falcon
The ‘20-Week EMA’ is placed at 17000 / 5150
level.
Indices have now tested the 15860 / 4766 level,
which is the 78.6% Fibonacci Retracement level
of the rise from
15135
/
4531 (Low on
Actionable points:
December 23, 2011) to 18524 / 5630 (High on
View
Neutral
February 22, 2012).
Resistance Levels
4920 - 4957
Support Levels
4860 - 4789
The daily ‘RSI - Smoothened’ oscillator is placed
well inside the oversold territory.
The candlestick pattern on the weekly chart
The said pattern will be confirmed only if indices
represents a bullish “Hammer”.
trade above the high of 16391 / 4957. Moreover,
the daily ‘RSI-Smoothened’ oscillator is in the
oversold territory. The positive impact of this
Trading strategy:
oscillator would be seen above 16391 / 4957 level.
Markets traded with extreme pessimism last week as
In this scenario, indices are likely to bounce towards
negative domestic and global inflows continued to
16700 - 16840 / 5050 - 5090 levels. Conversely,
dampen trader sentiment. We are now observing that
Friday’s low of 15809 / 4789 is likely to act as a
indices have precisely tested the 78.6% Fibonacci
decent support in coming trading sessions. A
Retracement level of the rise from 15135 / 4531 (Low
violation of this level would clearly increase the
on December 23, 2011) to 18524 / 5630 (High on
chances of a further fall and as a result indices may
February 22, 2012). The recovery on Friday’s session
slide towards 15678 / 4695 level.
was led by banking heavyweight SBI, on the back of
strong quarterly numbers. The weekly chart depicts a
Japanese candlestick pattern which resembles a
‘Bullish Hammer’.
1
Daily Technical Report
May 21, 2012
Bank Nifty Outlook - (9310)
On Friday, Bank Nifty opened on a pessimistic note in
Exhibit 2: Bank Nifty Daily Chart
line with our benchmark indices and gained strength
as the day progressed. The “Bullish Hammer”
candlestick pattern mentioned in our previous report
still holds its significance as the index managed to
give a close well above 9047 level. We are also
witnessing a “Bullish Engulfing” candlestick pattern
near 61.8% Fibonacci retracement of the rise from
December 20, 2011 - February 26, 2012. A positive
crossover in “Stochastic” and “RSI” momentum
oscillator on the daily chart indicates that going
forward if the index manages to sustain above
Friday’s high of 9365 then it is likely to rally towards
9430 - 9500. On the downside 9093 - 8995 levels
are likely to act as support in coming trading session.
Actionable points:
View
Positive above 9365
Expected Targets
9430 - 9500
Support Levels
9093 - 8995
Source: Falcon
2
Daily Technical Report
May 21, 2012
Daily Pivot Levels for Nifty 50 Stocks
SCRIPS
S2
S1
PIVOT
R1
R2
SENSEX
15,660
15,906
16,056
16,303
16,453
NIFTY
4,743
4,817
4,863
4,937
4,983
BANKNIFTY
8,854
9,082
9,223
9,452
9,593
ACC
1,140
1,150
1,164
1,174
1,189
AMBUJACEM
139
142
146
148
152
ASIANPAINT
3,617
3,659
3,692
3,734
3,767
AXISBANK
909
929
942
963
976
BAJAJ-AUTO
1,504
1,516
1,536
1,548
1,567
BANKBARODA
622
631
638
647
655
BHARTIARTL
290
293
296
299
302
BHEL
193
197
201
205
209
BPCL
709
717
730
738
750
CAIRN
310
315
320
326
331
CIPLA
305
311
315
320
324
COALINDIA
299
301
303
306
308
DLF
179
182
185
188
191
DRREDDY
1,627
1,643
1,655
1,672
1,684
GAIL
295
307
313
324
331
GRASIM
2,227
2,299
2,346
2,418
2,465
HCLTECH
470
477
482
489
494
HDFC
616
626
633
642
650
HDFCBANK
483
492
498
507
513
HEROMOTOCO
1,814
1,841
1,863
1,889
1,911
HINDALCO
104
106
108
109
111
HINDUNILVR
421
426
432
437
443
ICICIBANK
753
779
795
821
836
IDFC
109
114
116
121
124
INFY
2,260
2,322
2,363
2,425
2,466
ITC
226
233
237
244
248
JINDALSTEL
438
455
465
481
492
JPASSOCIAT
59
61
62
63
64
KOTAKBANK
524
537
547
561
570
LT
1,119
1,140
1,156
1,177
1,193
M&M
609
625
637
654
666
MARUTI
1,135
1,151
1,172
1,188
1,209
NTPC
137
141
144
148
152
ONGC
240
244
247
251
254
PNB
693
707
721
735
748
POWERGRID
101
103
105
107
108
RANBAXY
473
480
484
491
496
RELIANCE
665
677
687
698
708
RELINFRA
414
426
434
445
453
SAIL
84
87
89
92
94
SBIN
1,769
1,855
1,906
1,992
2,043
SESAGOA
174
184
190
200
207
SIEMENS
652
672
685
705
719
STER
92
96
99
104
106
SUNPHARMA
561
571
580
591
599
TATAMOTORS
250
255
261
266
272
TATAPOWER
87
89
91
93
94
TATASTEEL
385
393
397
405
409
TCS
1,190
1,201
1,213
1,223
1,235
WIPRO
378
385
389
395
400
3
Daily Technical Report
May 21, 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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