Daily Technical Report
July 25, 2012
Exhibit 1: Nifty Daily Chart
Sensex (16918) / NIFTY (5128)
Yesterday, our markets opened on a flat note in-line
with other Asian markets and subsequently traded in
a narrow range to close marginally in the positive
territory. On the sectoral front, FMCG, Consumer
Durables and Oil & Gas counters bounced back
during yesterday’s session; whereas Capital Goods, IT
and Teck sectors remained under pressure. The
advance to decline ratio was marginally in favor of
declining counters (A=1391 D=1395) (Source
-
Formation
The weekly 61.8% Fibonacci retracement of the
fall from 18524 /5630 (February 22, 2012) -
15749 / 4770 (June 4, 2012) is seen at 17464 /
5302.
On the weekly chart, we are witnessing a
“Downward Sloping Trend Line” resistance near
17687 / 5386 formed by joining the highs of
21109 / 6339 (November 5, 2010) - 18524 /
Source: Falcon
5630 (February 24, 2012).
The ’20-day EMA’ and
’20-week EMA’ are
Actionable points:
placed at 17200 / 5218 and 17000 / 5155
level, respectively.
View
Neutral
Resistance
5164 - 5197
Support Levels
5098 - 5041
Trading strategy:
Despite extreme negative overnight cues from
European and US markets, our markets opened on a
quiet note and traded sideways throughout the
session. As expected, ‘200-day SMA’ provided decent
support for the markets during yesterday’s session.
Going forward, we continue to mention 16808 /
5098 level as an important support level for the
markets. If indices sustain below this level then they
may slide further down to test 16636 / 5041. On the
upside, Monday’s high of 17048 / 5164 remains to
be a strong immediate resistance in coming trading
session. Only a sustainable move above this level
may lead to some upside and then indices may move
upwards to test 17142 - 17205 / 5197 - 5219 level.
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Daily Technical Report
July 25, 2012
Exhibit 2: Bank Nifty Daily Chart
Bank Nifty Outlook - (10299)
Yesterday, Bank Nifty opened on a flat note and
traded in a narrow range throughout the session. We
had mentioned in our previous report that the
momentum oscillators on the hourly chart are placed
in oversold conditions and a bounce back in the index
is likely. We are now witnessing a negative crossover
in “5 & 20 EMA” on the daily chart which is a cause
of concern. On the flip side we are witnessing a
“Bullish Harami” candlestick pattern. This pattern
needs confirmation in the form of a close above the
10350
mark. Considering these technical
observations we expect the coming trading session to
be volatile. On the upside 10423 - 10473 levels are
likely to act as resistance and on the downside 10200
- 10160 levels are likely to act as support for the day.
Actionable points:
View
Neutral
Resistance Levels
10423 - 10473
Source: Falcon
Support Level
10200 - 10160
2
Daily Technical Report
July 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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