Daily Technical Report
August 22, 2012
Exhibit 1: Nifty Daily Chart
Sensex (17885) / NIFTY (5421)
The weak began on a flat note in line with globe clues
but strong buying in the final hour of trade resulted in
a close well above 5400 mark for the first time after
March 14, 2012. On sectoral front, IT, Power, TECK
and Realty counters contributed heavily during
yesterday’s session; whereas only Health Care sector
ended with nominal loss. The advance to decline ratio
was in favor of advancing counters (A=1498
Formation
On the weekly chart, the indices have precisely
closed at the “Downward Sloping Trend Line”
resistance near 17802 / 5391 formed by joining
the highs of 21109 / 6339 (November 5, 2010)
- 18524 / 5630 (February 24, 2012).
The ’20-day EMA’ and the ’200-day SMA’ are
placed at 17400 / 5296 and 16900 / 5113
levels, respectively.
Source: Falcon
A weekly closing above 17727 / 5386 level
would confirm a ‘Higher Top - Higher Bottom’
Actionable points:
formation on the weekly chart after August 28,
2009.
View
Bullish Above 5425
Expected Targets
5450 - 5500
Support Levels
5342
Trading strategy:
Finally, we have witnessed the much awaited
breakout above the psychological level of 5400 and a
closing above 17727 / 5386. As expected, significant
gush of liquidity was seen beyond the 5400 mark.
Hence, indices surged during the last hour of the
session and registered a high of 17899 / 5425.Going
forward, we advise traders to remain long on the
market and trade with a positive bias. Indices are now
likely to rally further and may test mentioned levels of
17950 - 18050 / 5450 - 5500 once they sustain
above yesterday's high of 17899 / 5425. On the
downside, Friday's low of
17622 /
5342 would
provide a decent support in coming trading session.
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Daily Technical Report
August 22, 2012
Exhibit 2: Bank Nifty Daily Chart
Bank Nifty Outlook - (10470)
Yesterday, Bank Nifty opened on a flat note and
traded in a narrow range throughout the session.
However, during the last hour of trade we witnessed
buying interest in the index which led to a close near
day’s high. We are now witnessing a “Tweezer
Bottom” candlestick near the upward sloping trend
line formed by joining the lows of June 19, 2012 -
July 26, 2012. The above mentioned candlestick will
have its bullish implication as long as the index stays
above the 10354 level. In this scenario, if the index
sustains above yesterday’s high of 10485 then it is
likely to rally towards 10614 - 10641 levels. On the
downside, the 10354 mark will act as an important
support level for the index in coming trading session.
Actionable points:
View
Bullish Above 10485
Expected Targets
10614 - 10641
Support Levels
10354
Source: Falcon
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Daily Technical Report
August 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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