Daily Technical Report
July 25, 2013
Exhibit 1: Nifty Daily Chart
Sensex (20091) / NIFTY (5991)
Yesterday, our benchmark indices opened on a pessimistic
note as the markets reacted to liquidity curbs imposed by the
Reserve Bank of India. Similar to last Tuesday, once again
the Banking counters were the worst affected along with the
Consumer Durables and Capital Goods space. The IT and
Teck sectors outperformed our benchmark indices. The
Advance to Decline ratio was strongly in favor of declining
Formation
The ’89-day EMA’ and the ’89-week EMA’ are placed at
19473/ 5881and 18602 / 5625levels, respectively.
The ’20-day EMA’ and the ‘20-week EMA’ are placed at
19775 / 5939 and 19522 / 5892, respectively.
The weekly momentum oscillators are still positively
poised. However, the daily momentum oscillators are
now signaling a negative crossover.
The 78.60% Fibonacci retracement level of the fall from
20444 / 6229 to 18467/ 5566 is placed at 20021 /
6088.
Trading strategy:
Yesterday, Indices opened with a downside gap and
Source: Falcon:
maintained their pessimism throughout the session. In the
process, indices have now sneaked below Monday’s low of
Actionable points:
20065 / 6004, which has resulted in confirmation ‘Rising
Wedge’ pattern breakdown. Also, the momentum oscillators
on the Daily chart are now signaling a negative crossover.
View
Bearish below 5962
Hence, any sustainable move below yesterday’s low 19994 /
Expected Targets
5938 - 5910
5962 would aggravate the negative momentum. In this
Resistance Levels
6020 - 6094
scenario, indices may immediately slide towards 19775 -
19649 / 5938 - 5910 levels. On the flipside, Tuesday’s high
of 20351 / 6094 would now act as strong resistance in
coming trading session. Traders are advised to stick to
individual stocks and avoid taking larger bets as volatility is
set to increase on account of the July series derivative expiry.
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Daily Technical Report
July 25, 2013
Exhibit 2: Bank Nifty Daily Chart
Bank Nifty Outlook - (10720)
Yesterday, yet another measure from the RBI to curb Rupee
(INR) depreciation has resulted in massive selling pressure in
banking sector. As a result, The Bank Nifty has closed below
the critical support level 10829. Considering current price
action, we expect a significant decline in the banking index in
the days to come. From a trading perspective, any sustainable
move below yesterday’s low of 10661 would signal further
selling pressure. As a result, the Bank Nifty may slide towards
10500 - 10408. On the flipside, 10829 would act as strong
resistance for the index.
Actionable points:
View
Bearish below 10661
Expected Target
10500 - 10408
Resistance Level
10829
Source: Falcon:
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Daily Technical Report
July 25, 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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