Daily Technical Report
May 29, 2012
Sensex (16417) / NIFTY (4986)
Exhibit 1: Nifty Daily Chart
Yesterday, our benchmark indices opened on a
positive note and traded with a strong positive bias to
close near day’s high. The rally was mainly lead by
banking heavyweight ‘SBI’ which closed almost 5%
higher. There was no sector on the losing side. The
advance to decline ratio was strongly in favor of
advancing counters (A=1714 D=1008) (Source -
Formation
The 200-day SMA (Simple Moving Average) and
20-day EMA (Exponential Moving Average) have
now shifted to 16800 / 5070 and 16429 /
4980, respectively.
The ‘20-Week EMA’ is placed at 16930 / 5130
level.
Indices have taken a support near 15860 /
Source: Falcon
4766 level, 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 has now
View
Positive above 4995
signaled a positive crossover in the oversold
Expected Targets
5050 - 5090
territory
Support Levels
4943 - 4889
The candlestick pattern on the weekly chart
represents another bullish “Hammer”.
On the daily chart we are witnessing positive
crossover in “3&8 EMA”.
Trading strategy:
The week began on an optimistic note after Friday’s
flat session and our benchmark indices have finally
managed to break out of the mentioned trading
range of 16390 to 15809 / 4957 to 4767. On the
daily chart we are now witnessing a positive crossover
in “3&8 EMA” which suggests that momentum on the
upside is likely to continue once the Indices trade
above yesterday’s high of 16440 / 4995. In this
scenario, indices are likely to move towards 16700 -
16840 / 5050 - 5090 levels, which nearly coincide
with the ‘200-day SMA”. On the downside the 16290
/ 4943 mark is a decent support for the markets.
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Daily Technical Report
May 29, 2012
Exhibit 2: Bank Nifty Daily Chart
Bank Nifty Outlook - (9698)
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 we witnessed
strong rally which led the index to close near the
highest point of the day. The index has managed to
give a convincing close above the mentioned
resistance zone of
9525
-
9605. We are now
witnessing positive crossover of directional indicators
in “ADX (9)” indicator. The bullish implication of the
mentioned crossover would be seen if the Bank nifty
sustains above yesterday’s high of 9717. In this case
index is likely to rally towards 9847 - 9900 levels. On
the downside 9554 - 9370 levels are likely to act as
support in coming trading session.
Actionable points:
View
Positive above 9717
Expected Targets
9847 - 9900
Support Levels
9554 - 9370
Source: Falcon
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Daily Technical Report
May 29, 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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