Daily Technical Report
June 22, 2012
Exhibit 1: Nifty Daily Chart
Sensex (17033) / NIFTY (5165)
Yesterday, for the third consecutive session indices
opened on a flat note and traded in a narrow range
in the first half. However, strong buying during the
second half pushed indices significantly higher to
close at the highest point of the day. On sectoral
front, Realty, Capital Goods and Banking counters
rallied sharply during yesterday’s sessions; whereas
Oil & Gas and IT sectors ended on a losing side. The
advance to decline ratio was strongly in favor of
advancing counters (A=1658 D=1079) (Source -
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
level.
Source: Falcon
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,
2012.
View
Bullish above 5190
Expected target
5270
The positive crossover in weekly ‘RSI’ momentum
Support Levels
5093 - 5146
oscillator is still intact. Also, the weekly ‘3 & 8
EMA’ is signaling a positive crossover.
Trading strategy:
Yesterday after a quite opening, substantial buying by
market participants led the indices to close on a
strong footing. Going forward, we continue to
maintain that the
17110
/
5190 level is an
intermediate resistance level for the market. Once
indices manage to sustain above this level then we
may witness a continuation of the prior uptrend. In
this scenario, indices are likely to move upwards to
test 17400 / 5270 level which is the target of the
'Channel' pattern mentioned above. Conversely, the
support is seen at 16968 - 16799 / 5146 - 5093
levels. Albeit we may witness a gap down opening in
today's session, we are of the opinion that positional
traders with a 2 to 3 week time frame should use this
fall to accumulate long positions.
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Daily Technical Report
June 22, 2012
Exhibit 2: Bank Nifty Daily Chart
Bank Nifty Outlook - (10034)
Yesterday, Bank Nifty opened on a flat note and
traded in a narrow range during first half of the
session. However, in line with the broader market,
momentum picked up during the second half which
led the index to close near the highest point of the
day. Considering the bigger picture, we reiterate our
view that index is likely to trade in a broad range of
10225
-
9595. Positional traders holding long
positions should hold with a trailing stop loss of 9764
(spot level) on closing basis. Within the mentioned
range intermediate resistance levels are seen at
10100 - 10180 and support levels are near to 9764
- 9661 mark.
Actionable points:
View
Neutral
Resistance Levels
10100 - 10180
Support Levels
9764 - 9661
Source: Falcon
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Daily Technical Report
June 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
Angel Broking Pvt. Ltd.
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