Daily Technical Report
May 25, 2012
Sensex (16222) / NIFTY (4921)
Exhibit 1: Nifty Daily Chart
Yesterday, markets opened marginally higher and
traded with extreme optimism after crossing
Wednesday’s high of
4854. Strong positive
momentum during the latter part of the session led
indices to close at the highest point of the day. On
sectoral front, Consumer Durables, Banking, Oil &
Gas, Teck and Metal counters contributed heavily in
yesterday’s rally. There was no sector in the negative
territory. The advance to decline ratio was strongly in
favor of advancing counters (A=1544 D=1140)
Formation
The 200-day SMA (Simple Moving Average) and
20-day EMA (Exponential Moving Average) have
now shifted to 16837 / 5079 and 16452 /
4986, respectively.
Indices have now tested the 15860 / 4766 level,
Source: Falcon
which is the 78.6% Fibonacci Retracement level
of the rise from
15135
/
4531 (Low on
December 23, 2011) to 18524 / 5630 (High on
February 22, 2012).
Actionable points:
The daily ‘RSI
- Smoothened’ oscillator is
View
Positive above 4957
signaling a positive crossover.
Expected Targets
4986 - 5040
The candlestick pattern on the weekly and the
Support Levels
4800 - 4759
daily chart represents a bullish “Hammer”.
Trading strategy:
After a mixed session on Wednesday, we witnessed a
flat opening during yesterday's session. As mentioned
in our previous report, once indices crossed
Wednesday’s high of 4854 the positive impact of
bullish hammer was seen for the rest of the session.
We have been mentioning the extreme oversold
condition of daily "RSI-Smoothened" oscillator. This
technical tool has now signaled a positive crossover.
Hence, if indices break 16391 / 4957 level, then we
are likely to witness enhanced buying interest among
market participants. As a result, indices may rally
higher to test 16452 - 16672 / 4986 - 5040 levels.
Conversely, last Friday’s low of
15809
/
4789
remains to be a decent support in coming trading
sessions.
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Daily Technical Report
May 25, 2012
Bank Nifty Outlook - (9438)
Yesterday, Bank Nifty opened on an optimistic note
Exhibit 2: Bank Nifty Daily Chart
and gained strength as the day progressed to close
near the highest point of the day. As mentioned in our
previous report we witnessed high volatility during
yesterday’s session. The momentum oscillators on the
daily chart continue with their buy signal. Going
forward a move above yesterday’s high will push the
index towards the strong resistance zone of 9525 -
9605. On the downside 9270 - 9108 levels are likely
to act as support in coming trading session.
Actionable points:
View
Neutral
Resistance Levels
9525 - 9605
Support Levels
9270 - 9108
Source: Falcon
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Daily Technical Report
May 25, 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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