Daily Technical Report
May 31, 2012
Exhibit 1: Nifty Daily Chart
Sensex (16312) / NIFTY (4951)
Despite positive cues from European as well as US
bourses, we opened lower during yesterday’s session
on the back of negative sentiments across Asian
markets. Subsequently, indices remained under
pressure throughout the session to close below the
important support level of 4957. On sectoral front,
Auto, Consumer Durables and Realty counters
corrected sharply during yesterday’s session; whereas
IT and Teck sectors ended with a nominal gain. The
advance to decline ratio was strongly in of advancing
counters
(A=1046 D=1654) (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.
Source: Falcon
The ‘20-Week EMA’ is placed at 16930 / 5130
level.
Indices have taken a support near 15860 /
4766 level, which is the
78.6% Fibonacci
Actionable points:
Retracement level of the rise from 15135 / 4531
View
Sell Below 4944
(Low on December 23, 2011) to 18524 / 5630
Resistance Levels
4982
(High on February 22, 2012).
Expected targets
4912 - 4889
The candlestick pattern on the weekly chart
represents another bullish “Hammer”.
Trading strategy:
Yesterday, we witnessed a range bound activity after a
Considering that today we have the derivatives
gap down opening and eventually markets closed
expiry, the session is likely to trade with immense
below the important support level of 4957. Looking at
volatility and hence, traders are advised to trade with
the negative placement of hourly oscillators it can be
cautious approach
concluded that indices are likely to drift lower to test
16195
/
4912 or
4889, if they sustain below
yesterday's low of 16295 / 4944. On the upside,
yesterday's high of 16429 / 4982 level would act as
the resistance for the day.
1
Daily Technical Report
May 31, 2012
Exhibit 2: Bank Nifty Daily Chart
Bank Nifty Outlook - (9534)
Yesterday, Bank Nifty opened with a downside gap
and traded in a narrow range during first half of the
session. However, during the last hour of trade we
witnessed selling pressure which led the index to close
near the lowest point of the day. The momentum
oscillator “Stochastic” on the daily chart has given a
fresh sell signal in overbought zone. The negative
crossover in “RSI - Smoothened” oscillator on the
hourly chart mentioned in our previous report still
holds. Thus a sustainable move below yesterday low
of 9514 would result in further selling pressure and
the index is likely to drift towards the support level of
9408 - 9370. On the upside 9625 - 9693 levels are
likely to act as resistance in coming trading session.
Actionable points:
View
Sell Below 9514
Resistance Levels
9625 - 9693
Source: Falcon
Expected targets
9408 - 9370
2
Daily Technical Report
May 31, 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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