Daily Technical Report
May 24, 2012
Sensex (15948) / NIFTY (4836)
Exhibit 1: Nifty Daily Chart
Yesterday, markets opened on pessimistic note in-line
negative Asian bourses and drifted lower to test 4800
mark. A minor bounce back from the lows led indices
to close marginally below 4850 mark. On sectoral
front, Consumer Durables, Capital Goods and Realty
counters corrected sharply during yesterday’s session;
whereas IT and Health Care sectors ended on with a
nominal gain. The advance to decline ratio was
strongly in favor of declining counters (A=1095
Formation
The 200-day SMA (Simple Moving Average) and
20-day EMA (Exponential Moving Average) have
now shifted to 16837 / 5079 and 16532 /
5009, respectively.
Source: Falcon
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
Positive above 4854
The daily ‘RSI - Smoothened’ oscillator is placed
Expected Targets
4938 - 4957
well inside the oversold territory.
Support Levels
4800 - 4759
The candlestick pattern on the weekly and the
daily chart represents a bullish “Hammer”.
Trading strategy:
Yesterday, the depreciation in rupee continued further
and recorded all time low below the 56 mark. This
adversely affected equity markets and indices plunged
to test 4800 mark. Going forward, there is no change
in our view that looking at daily momentum
oscillators, traders should avoid creating fresh short
positions. Traders are advised to wait for a reversal
signal in hourly chart to go long in the market. For
day traders, yesterday’s high of 16002 / 4854 holds
significance. If indices manage to cross and sustain
above this level then they are likely to head higher
towards the 16391 / 4957 mark in the coming few
sessions. Conversely, Friday’s low of 15809 / 4789 is
likely to act as a decent support in coming trading
sessions.
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Daily Technical Report
May 24, 2012
Bank Nifty Outlook - (9210)
Yesterday, Bank Nifty opened on a pessimistic note
Exhibit 2: Bank Nifty Daily Chart
and traded in a narrow range throughout the session.
As mentioned in our previous report we witnessed
extreme volatility in yesterday’s session. We are
witnessing a “Doji” candlestick pattern which suggests
indecisiveness prevailing at current levels. Moreover,
the mixed signals from momentum oscillators on
hourly and daily chart continue to suggest enhanced
volatility in coming trading session. Thus, going
forward 9296 - 9377 are likely to act as resistance
and on the downside 9108 - 9047 are likely to act as
support in coming trading session.
Actionable points:
View
Neutral
Resistance Levels
9296 - 9377
Support Levels
9108 - 9047
Source: Falcon
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Daily Technical Report
May 24, 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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