Daily Technical Report
October 03, 2012
Exhibit 1: Nifty Daily Chart
Sensex (18824) / NIFTY (5719)
As expected, our benchmark indices opened on a flat note
in-line with other Asian bourses. Subsequently, indices traded
with a positive bias throughout the day and closed above the
5700 mark. Monday’s up move was mainly led by the IT,
Teck, Capital Goods and Auto counters; whereas Oil & Gas
and Banking sectors ended with very nominal loss. Overall
market volumes remained lower but the advance to decline
ratio was strongly in favor of advancing counters (A=1810
Formation
The ’20-day EMA’ and the ’20-week EMA’ are placed at
18265 / 5535 and 17625 / 5340 levels, respectively.
The monthly ‘RSI’ oscillator is moving higher from the 50
mark and the ADX (9) indicator is now signaling a
positive crossover.
The weekly chart depicts a ‘Narrow Range’ body
formation.
Source: Falcon:
Trading strategy:
Actionable points:
Although, indices have ended with very nominal gains,
View
Neutral
individual stocks in the mid-cap universe have performed
extremely well during Monday’s session. The underlying bias
Resistance Levels
5741
remains unchanged and we reiterate our view that going
Support Levels
5630 - 5580
forward, only a sustainable move above 19132 / 5741
would attract strong buying interest in the market. As a
result, indices may rally towards their next targets of 19542 -
19812 / 5850 - 5945 and even the possibility of testing
6000 (Nifty) cannot be ruled out. The key support for the
market is seen at 18552 / 5638 level.
We continue to advise that traders should target stock
specific moves and trade with strict stop losses.
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Daily Technical Report
October 03, 2012
Exhibit 2: Bank Nifty Daily Chart
Bank Nifty Outlook - (11420)
On Monday, Bank Nifty opened on a flat note and traded in
a narrow range throughout the session in line with our
benchmark indices. During the day, the index hovered
around the hourly “20 EMA” but has closed marginally
below it. We reiterate our view that due to the overbought
condition of momentum oscillators on the daily chart the
index is likely to consolidate in the range of 11320 - 11537.
Only a sustainable move outside the said range will dictate a
clear direction of the trend. In the mentioned range 11490 -
11518 levels are likely to act as resistance and 11366 -
11320 levels are likely to act as support in coming trading
session.
Actionable points:
View
Neutral
Resistance Levels
11490 - 11518
Support Levels
11366 - 11320
Source: Falcon:
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Daily Technical Report
October 03, 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
Angel Broking Pvt. Ltd.
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