Daily Technical Report
July 26, 2013
Exhibit 1: Nifty Daily Chart
Sensex (19805) / NIFTY (5908)
Yesterday, once again our benchmark indices opened lower
on the back mixed cues from other Asian bourses. The
negative momentum accelerated as the day progressed and
indices posted a closing with significant losses. The FMCG
counters led the decline along with the Metal, Healthcare
and Oil & Gas stocks. However, the IT and Auto sectors
somehow managed to hold their ground. The Advance to
Decline ratio was strongly in favor of declining counters.
Formation
The ’89-day EMA’ and the ’89-week EMA’ are placed at
19480/ 5881and 18596 / 5623 levels, respectively.
The ’20-day EMA’ and the ‘20-week EMA’ are placed at
19777 / 5936 and 19495/ 5884, respectively.
The daily momentum oscillators along with the ‘ADX (9)’
indicator 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.
Source: Falcon:
Trading strategy:
Wednesday’s weak closing was followed by a slight gap
Actionable points:
down opening in yesterday’s session. In our previous report,
we had mentioned that indices have broken down from the
View
Bearish below 5896
‘Rising Wedge’ pattern. Also, the daily momentum oscillators
Expected Targets
5850 - 5802
were negatively poised. Hence, as expected, the impact of
Resistance Levels
5991
these technical evidences was seen once indices fell below
Wednesday’s low of 19994 / 5962. As a result, Nifty then
slid lower and precisely met with our target of 5910. The
daily ‘RSI-Smoothened’ oscillator and the ‘ADX (9)’ indicator
are now signaling a negative crossover. The market bias
remains negative and a fall below yesterday’s low of 19763
/ 5896 may result in a decline towards the next support
levels of 19650 - 19480 / 5880 - 5850. On the flipside,
yesterday’s high of 20111 / 5991 would now act as a key
resistance for our benchmark indices.
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Daily Technical Report
July 26, 2013
Exhibit 2: Bank Nifty Daily Chart
Bank Nifty Outlook - (10614)
Yesterday, the Bank Nifty too opened marginally lower and
then traded with negative bias with throughout the session.
However the overall intraday correction was shallower in
comparison to our benchmark indices. During Wednesday’s
session, the Bank Nifty had confirmed a break down from the
‘Horizontal Line’ support of 10829. Considering current price
action, we reiterate that the weakness in this index is likely to
continue if it manages to sustain below yesterday’s low of
10594. In this scenario, the Bank Nifty may correct towards
the next support level of 10500 - 10408. On the flipside,
10829 remains to be a strong resistance for the index.
Actionable points:
View
Bearish below 10594
Expected Target
10500 - 10408
Resistance Level
10829
Source: Falcon:
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Daily Technical Report
July 26, 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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