Daily Technical Report
August 24, 2012
Exhibit 1: Nifty Daily Chart
Sensex (17850) / NIFTY (5415)
Yesterday, our markets opened higher in-line with
other Asian bourses but faced strong resistance
around 5450 mark and subsequently pared gains to
close marginally above 5400. On sectoral front, Oil &
Gas, Auto and Capital Goods corrected heavily
during yesterday’s session; whereas IT, Teck and
FMCG sectors rallied with decent gains. The advance
to decline ratio was in favor of declining counters
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.
A weekly closing above 17727 / 5386 level
would confirm a ‘Higher Top - Higher Bottom’
Source: Falcon
formation on the weekly chart after August 28,
2009.
Actionable points:
Trading strategy:
View
Neutral
Resistance Levels
5449
Yesterday, the session started on an optimistic note
Support Levels
5392 - 5342
but has yet again failed to give a broad based rally
on strong volumes. Going forward, yesterday's high
(17973 / 5449) is likely to act as a strong resistance
for our markets. Only a sustainable move beyond this
level may push indices higher to test 18050 / 5500
level. Conversely, a breach of yesterday's low (17792
/ 5393) would increase selling pressure and in this
case, indices may slip towards last Friday's low of
17622 / 5342. Traders are advised to be cautious as
a weekly closing near 5350 mark would lead to the
formation of a “Shooting star” candlestick formation
on the weekly chart which is considered to be bearish.
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Daily Technical Report
August 24, 2012
Exhibit 2: Bank Nifty Daily Chart
Bank Nifty Outlook - (10472)
Yesterday, Bank Nifty opened on an optimistic note
and traded in a narrow range during the first half of
trade. However during the second half of trade selling
pressure lead the index to close in the negative
territory. There is negligible change in the chart
structure and we reiterate our view that the broad
range remains to be between 10641 and 10240.
Within the mentioned range, on the upside if the
index sustains above 10561 then it is likely to rally
towards 10614 - 10641 levels. On the downside
10354 - 10240 levels are likely to act as support
levels in coming trading session.
Actionable points:
View
Neutral
Resistance Levels
10561 - 10641
Support Levels
10401 - 10354
Source: Falcon
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Daily Technical Report
August 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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