Technical Research | January 31, 2012
Daily Technical Report
Sensex (16863) / NIFTY (5087)
Exhibit 1: Nifty Daily Chart
The week has begun on a pessimistic note and markets
remained under huge selling pressure throughout
yesterday’s session. Indices closed almost at the lowest point
of the day. On the sectoral front, Capital Goods, Power and
Realty counters corrected sharply and there was no sector in
the positive territory. The advance to decline ratio was
strongly in favor of declining counters. (A=996 D=1819)
Formation:
• The 200-day SMA is placed at 17332 / 5202 level.
• The “Hanging Man” formation mentioned in our
previous report is now confirmed.
• We are witnessing a negative crossover in “RSI”
momentum oscillator.
Source: Falcon
• The “20-day EMA” is placed around 16493 / 4964.
Actionable points:
Trading strategy:
View
Bearish
Markets opened with significant downside gap and traded
Sell Only below
5076
Expected target
5055 - 4955
with a strong negative bias after breaking Friday’s low of
Resistance level
5135 - 5166
17106 / 5162. A close below this level has now confirmed
the bearish candlestick pattern called as “Hanging Man”.
The negative impact of this pattern was seen throughout the
day as indices corrected near the mentioned level of 16757
/ 5055. Further, we are witnessing a negative crossover in
daily “RSI” oscillator which indicates possibility of a further
corrective down move if indices sustain below yesterday’s
low of 16828 / 5076. In this case, indices are likely to drift
towards 16757 - 16447 / 5055 - 4955 levels. Conversely,
17015 - 17138 / 5135 - 5166 levels are likely to act as
resistance in coming trading sessions.
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1
Technical Research | January 31, 2012
Bank Nifty Outlook - (9537)
Exhibit 2: Bank Nifty Daily Chart
In yesterday’s session, Bank Nifty opened on a pessimistic
note and selling pressure was witnessed throughout the
session. This led the index to test the mentioned support
level of 9530. The negative crossover in momentum
oscillator “RSI and Stochastic” is still intact. Going
forward, selling pressure is likely to increase if the index
sustains below yesterday’s low of
9509. In such a
scenario, the Bank nifty is likely to find support at 9390 -
9300 levels. On the upside 9664 - 9742 levels may act
as resistance in coming trading session.
Actionable points:
View
Negative Below 9509
Expected Target
9390 - 9300
Resistance Levels
9664 - 9742
Source: Falcon
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2
Technical Report
RESEARCH TEAM
Shardul Kulkarni
Head - Technicals
Sameet Chavan
Technical Analyst
Sacchitanand Uttekar
Technical Analyst
Mehul Kothari
Technical Analyst
Ankur Lakhotia
Technical Analyst
Research Team: 022-3952 6600
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