Daily Technical Report
July 26, 2012
Exhibit 1: Nifty Daily Chart
Sensex (16846) / NIFTY (5110)
Yesterday, we witnessed a flat opening in-line with
mixed global cues and fell below the 5098 mark in
the first half. However, a recovery in FMCG Major
ITC and few other index heavyweights resulted in
bounce back and markets closed marginally above
5100 mark. On the sectoral front, Metal, Consumer
Durables and Power counters were among the major
losers. The advance to decline ratio was strongly in
favor of declining counters (A=1091 D=1702)
Formation
The ’20-day EMA’ and
’20-week EMA’ are
placed at 17200 / 5218 and 17000 / 5155
level, respectively. Also, the ‘200-day SMA’ is
placed at 16880 / 5100.
The 50% Fibonacci Retracement level of the rise
from 15748 / 4770 (low of June 4, 2012) to
17631 / 5349 (High of July 10, 2012) is at
16690 / 5060 level.
Source: Falcon
The daily chart depicts a ‘Bullish Hammer’
Japanese candlestick pattern.
Actionable points:
View
Bullish above 5122
Trading strategy:
Expected targets
5145 - 5164 - 5197
Yesterday, indices opened flat and drifted lower
Support Levels
5098 - 5076
during the initial hour of the trade. However, it can be
clearly seen that the ‘200-day SMA’ has acted as a
substantial support for the Index. During yesterday’s
session also markets bounced back sharply after
registering a low of 16736 / 5076. We are now
observing a ‘Bullish Hammer’ pattern marginally
above the 50% Fibonacci Retracement level and near
the ‘200-day SMA’. Hence, the significance of this
pattern cannot be ignored. The said pattern will get
activated if indices sustain and close above
yesterday’s high of 16900 / 5122. In this scenario,
we may witness a bounce back towards 17047 -
17142 / 5164 - 5197 levels. The low (16736 / 5076)
of the hammer pattern may act as a support level in
coming trading session.
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Daily Technical Report
July 26, 2012
Exhibit 2: Bank Nifty Daily Chart
Bank Nifty Outlook - (10268)
Yesterday, Bank Nifty opened on a flat note and
traded in a narrow range throughout the session. We
are witnessing “Positive Divergence” in “RSI”
momentum indicator on the hourly chart. In addition
the “RSI - Smoothened” oscillator on the hourly chart
is placed in extreme overbought condition. The impact
of the above mentioned technical tools will be seen if
the index sustains above 10315. In such a scenario
the index is likely to temporary bounce towards
10400 - 10467 levels. On the downside 10200 -
10160 levels are likely to act as support in coming
trading session.
Actionable points:
View
Bullish above 10315
Expected targets
10400 - 10467
Support Level
10200 - 10160
Source: Falcon
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Daily Technical Report
July 26, 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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