Daily Technical Report
August 23, 2012
Exhibit 1: Nifty Daily Chart
Sensex (17847) / NIFTY (5413)
Yesterday, our markets opened marginally lower on
the back of weak closing in the US markets and
eventually closed marginally in the negative territory.
On sectoral front, Realty, Power and TECK counters
remained under pressure during yesterday’s session;
whereas Health Care and Auto sectors ended with a
nominal gain. The advance to decline ratio was in
favor of declining counters (A=1333 D=1458)
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 5434
Expected Targets
5450 - 5500
Support Levels
5342
Trading strategy:
Despite a strong closing above
5400 mark on
Monday, our markets could not continue the same
momentum during yesterday’s session. Going
forward, our view remains intact as there is negligible
change in the price structure after incorporating
yesterday’s session. We reiterate that traders can
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
17912 / 5434. 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 23, 2012
Exhibit 2: Bank Nifty Daily Chart
Bank Nifty Outlook - (10472)
Yesterday, Bank Nifty opened on pessimistic note in
line with our benchmark indices and gained strength
as the day progressed to close in positive territory. The
“Tweezer Bottom” candlestick still holds its bullish
significance as the index is above 10354 level. Hence
we continue to maintain a bullish stance on the index.
On the upside, if the index sustains above yesterday’s
high of 10534 then it is likely to rally towards 10614
- 10641 levels. On the downside, the 10401 - 10354
levels will act as an important support level for the
index in coming trading session.
Actionable points:
View
Bullish Above 10534
Expected Targets
10614 - 10641
Support Levels
10401 - 10354
Source: Falcon
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Daily Technical Report
August 23, 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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