Daily Technical Report
July 27, 2012
Exhibit 1: Nifty Daily Chart
Sensex (16640) / NIFTY (5043)
Once again our markets opened flat in-line with
global cues and then traded in a narrow range for
most part of the session. However, strong selling
pressure during the last hour of the day led indices to
tumble down sharply to marginally close below 5050
mark. On the sectoral front, Realty, Consumer Goods,
PSU and Banking counters plunged sharply during
yesterday’s session. There was no sector in the
positive territory. The advance to decline ratio was
strongly in favor of declining counters (A=842
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
Source: Falcon
17631 / 5349 (High of July 10, 2012) is at
16690 / 5060 level.
Actionable points:
Trading strategy:
View
Neutral
After a flat opening, indices traded quietly until the
Resistance Levels
5126 - 5164
last hour of the session. As expected on a derivative
Support Level
5032
expiry session, we witnessed immense volatility along
with strong negative momentum, which ultimately
dragged indices well below '200-day SMA' and closed
marginally below 50% Fibonacci retracement level as
mentioned above. In this process, indices negated the
'Bullish Hammer' pattern mentioned in our previous
report. Looking at the strong global cues, indices are
likely to open higher. On the upside, yesterday's high
of 16900 / 5126 will now act as important resistance
level for the market. A move beyond this level may
attract buying interest among market participants and
as a result, indices may move higher to test 17048 /
5164. On the downside, only if indices sustain below
yesterday's low of 16598 /
5032, then we may
witness further selling pressure in the market.
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Daily Technical Report
July 27, 2012
Bank Nifty Outlook - (10084)
Exhibit 2: Bank Nifty Daily Chart
Yesterday, Bank Nifty opened on a flat note and
traded in a narrow range during first half of the
session However during the second half selling
pressure led the index to close near day’s low. The
index has taken support near the gap area formed on
June 28, 2012. The momentum oscillators on the
hourly chart are placed in extreme overbought
condition and a bounce back is likely. In this scenario
we might witness a temporary bounce towards 10230
- 10320 levels. On the downside 10050 - 9888
levels are likely to act as support in coming trading
session.
Actionable points:
View
Neutral
Expected targets
10230 - 10320
Support Level
10050 - 9888
Source: Falcon
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Daily Technical Report
July 27, 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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