Daily Technical Report
May 22, 2012
Sensex (16183) / NIFTY (4906)
Exhibit 1: Nifty Daily Chart
Yesterday, our benchmark indices opened on a flat
note in-line with global cues. Consequently, indices
gained positive momentum during the first half but
pared their early gains to close marginally above
4900 mark. On sectoral front, Consumer Goods,
Realty and Power counters were among the major
gainers whereas Teck, FMCG and IT counters ended
on the losing side. The advance to decline ratio was
strongly in favor of advancing counters (A=1643
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.
The ‘20-Week EMA’ is placed at 17000 / 5150
Source: Falcon
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
December 23, 2011) to 18524 / 5630 (High on
Actionable points:
February 22, 2012).
View
Neutral
The daily ‘RSI - Smoothened’ oscillator is placed
Resistance Levels
4938 - 4957
well inside the oversold territory.
Support Levels
4881 - 4863
The candlestick pattern on the weekly chart
represents a bullish “Hammer”.
Conversely, Friday’s low of 15809 / 4789 is likely to
act as a decent support in coming trading sessions. A
Trading strategy:
violation of this level would clearly increase the
chances of a further fall and as a result indices may
The week began on a quiet note after a strong
slide towards 15678 / 4695 level.
intraday rally on Friday's session. As expected, indices
moved higher during the initial hour of the session but
lost gains on the account of rupee depreciation.
Looking at the daily momentum oscillators, we
reiterate our view that indices are likely to rally further
if they sustain above last week's high of 16391 /
4957. In this scenario, indices may test 16700 -
16840 / 5050 - 5090 levels.
1
Daily Technical Report
May 22, 2012
Bank Nifty Outlook - (9412)
Yesterday, Bank Nifty opened on an optimistic note in
Exhibit 2: Bank Nifty Daily Chart
line with our benchmark indices and traded in a
narrow range throughout the session. The positive
crossover in “Stochastic” and “RSI” momentum
oscillator on the daily chart mentioned in our previous
report is still intact. However on the hourly chart we
are witnessing narrow range body formations which
suggest probability of consolidation or a minor
pullback after the initial gap up opening expected
today. In addition the momentum oscillators on the
hourly chart are placed in overbought conditions.
Thus, going forward 9480 - 9533 are likely to act as
resistance and on the downside 9299 - 9227 are
likely to act as support in coming trading session.
Actionable points:
View
Neutral
Source: Falcon
Resistance Levels
9480 - 9533
Support Levels
9323 - 9227
Positive Bias:
Stock
Positive Expected
CMP
Remarks
Name
Above
Target
View will be
RELINFRA
454
461
485
negated below 449
2
Daily Technical Report
May 22, 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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