Daily Technical Report
August 28, 2012
Exhibit 1: Nifty Daily Chart
Sensex (17679) / NIFTY (5350)
The week started on a flat note in-line with mixed
global cues but strong selling pressure during the
second half of the session led to a close at the lowest
point of the day. The selling pressure was observed
mainly in Banking, Realty and Capital Goods
counters; whereas Oil & Gas and FMCG sectors were
in the green during yesterday’s session. The advance
to decline ratio was strongly in favor of declining
counters
(A=1020 D=1786) (Source
-
Formation
On the weekly chart, the indices have closed
above the “Downward Sloping Trend Line”
resistance around
17650/
5370 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 17554 / 5324 and 16900 / 5110
levels, respectively.
Looking at the “Line Chart” it is clear that indices
Source: Falcon
have now confirmed the ‘Higher Top - Higher
Bottom’ formation on the weekly chart after
Actionable points:
August 28, 2009.
The daily momentum oscillators viz., the RSI and
View
Negative Below 5346
the Stochastic are signaling a negative crossover.
Expected Targets
5290 - 5240
The weekly chart candle resembles a ‘Shooting
Resistance Levels
5370 - 5399
Star’ pattern.
Trading strategy:
After a quiet opening, the selling pressure intensified
during the second half, which led to a fall below the
last week's low of 17705 / 5368. As a result, the
negative momentum continued till the end of the
session. As mentioned in our previous report, the
momentum oscillators remain in the sell mode.
Going forward, we are of the opinion that if indices
sustain below yesterday's low of 17662 / 5346, then
they are likely to slip towards 17450 - 17285 / 5290
- 5240 levels. Conversely, yesterday's high of 17820
/ 5399 would act as immediate resistance for our
markets.
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Daily Technical Report
August 28, 2012
Exhibit 2: Bank Nifty Daily Chart
Bank Nifty Outlook - (10150)
Yesterday, Bank Nifty opened on a pessimistic note
and selling pressure throughout the day led the index
to close near day’s low. After a strong sideways
consolidation, the index has broken down from the
mentioned range of 10641 - 10240 and has closed
well below it. The momentum oscillators on the daily
chart continue with their sell signal. However, the
momentum oscillators on the hourly chart are placed
in extreme oversold territory and a minor pullback or
consolidation during the day cannot be ruled out. On
the upside 10250 - 10276 are likely to act as
resistance in coming trading session. However, if the
index sustains below yesterday’s low of 10134 then it
is likely to drift towards 10056 - 9964.
Actionable points:
View
Negative Below 10134
Expected Targets
10056 - 9964
Resistance Levels
10250 - 10276
Source: Falcon
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Daily Technical Report
August 28, 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
Angel Broking Pvt. Ltd.
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