Daily Technical Report
July 16 , 2013
Exhibit 1: Nifty Daily Chart
Sensex (20034) / NIFTY (6031)
First day of the week began on a muted note in-line with
quiet trading mood across the globe. During the initial hour,
indices slipped marginally inside the negative territory but
eventually managed to recover from the lows and closed
with modest gains. The Realty, FMCG and Consumer
Durables counters were the front gainers; whereas the Power
and IT sectors remained under pressure throughout the day.
The Advance to Decline ratio was strongly in favor of
Advancing counters. (A=1316 D=991)
(Source-
Formation
The ’89-day EMA’ and the ’89-week EMA’ are placed at
19367 / 5858 and 18566 / 5616 levels respectively.
The ’20-day EMA’ and the ‘20-week EMA’ are placed at
19435 / 5859 and 19451 / 5882, respectively.
The weekly ‘RSI’ and ‘Stochastic’ oscillators are positively
poised.
Source: Falcon:
The 61.8% and 78.60% Fibonacci retracement levels of
the fall from 20444 / 6229 to 18467/ 5566 are placed
Actionable points:
at 19689 / 5976 and 20021 / 6088, respectively.
View
Neutral
The daily chart depicts a ‘Bullish Pennant’ pattern
Support Levels
5980 - 5951
breakout.
Resistance Level
6038 - 6088
Trading strategy:
Yesterday, indices maintained their positive momentum after
crossing Friday’s high of 19992 / 6019 and closed almost at
the highest point of the day. Considering yesterday’s price
action and the overbought conditions of the “Stochastic”
oscillator, some profit booking may be seen in today’s
trading session. On the downside, 19883 - 19785 / 5980 -
5951 remains to be key support levels for our market. A fall
and close below this level would be a sign that the short term
uptrend is under threat. As expected and mentioned in our
previous reports, we have witnessed stock specific movement
in many individual counters and this is likely to continue in
coming trading session. Thus, we advise traders to adopt a
stock-centric approach and avoid taking undue risks.
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Daily Technical Report
July 16, 2013
Exhibit 2: Bank Nifty Daily Chart
Bank Nifty Outlook - (11790)
Yesterday, the Bank Nifty too opened flat and traded with
slightly negative bias during the initial hour of the session. In
our previous report, we had mentioned that the Bank Nifty
broke out from the ‘'Downward Sloping Trend Line' breakout
on Thursday. During yesterday’s session, it has once again
managed to take a support around this trend line and moved
higher to close at day’s high. However, it must be noted that
yesterday evening the RBI has taken certain key steps to
control liquidity and this is likely to have a near term negative
impact on the Banking counters. Thus going forward a fall
and close below Friday's low of 11589 would indicate a
failure of the positive breakout and would negate all bullish
prospects. On the upside, yesterday’s high of11812 will now
prove to be a key resistance of the Bank Nifty. Only a move
beyond this level would warrant a positive outlook for
banking counters.
Actionable points:
Source: Falcon:
View
Neutral
Resistance levels
11812 - 11867
Support Level
11589 - 11541
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Daily Technical Report
July 16, 2013
Research Team Tel: 022 - 30940000
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Research Team
Shardul Kulkarni
-
Head - Technicals
Sameet Chavan
-
Technical Analyst
Sacchitanand Uttekar
-
Technical Analyst
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