Daily Technical Report
October 04, 2012
Exhibit 1: Nifty Daily Chart
Sensex (18870) / NIFTY (5731)
Yesterday, our benchmark indices opened marginally higher
in-line with global cues and traded with a positive bias
throughout the day. Subsequently, Nifty managed to break
5741 level, but failed to close above it. Yesterday’s up move
was mainly led by the Oil & Gas, PSU, Healthcare and Metal
counters; whereas Auto, Consumer Durables and IT sectors
ended with very nominal loss. The advance to decline ratio
was strongly in favor of advancing counters (A=1759
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:
During yesterday's session, the Nifty has managed to cross
the stiff resistance level of
5741, but eventually closed
View
Neutral
marginally below it. At this juncture, we do not see any
Resistance Levels
5743
reversal sign or possibility of weakness in the market.
Support Levels
5630 - 5580
However, keeping in mind, the overbought position of
momentum oscillators, traders should try to keep on trailing
their stop losses to safeguard their profits on remaining
positions. Also, we are seeing that Nifty future premium has
risen from 25 points to 37 points. In a rising market, this
indicates an increase in fresh long positions. Going forward,
if indices manage to sustain above 19132 / 5743, then they
are likely to move 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.
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Daily Technical Report
October 04, 2012
Exhibit 2: Bank Nifty Daily Chart
Bank Nifty Outlook - (11415)
Yesterday, for the fifth consecutive session, the Bank Nifty
traded in a mentioned range of 11320 - 11537 and closed
almost near its pervious closing. There is absolutely no
change in outlook and we reiterate our opinion that only a
sustainable move outside the said zone will dictate the
direction of the trend. In the mentioned range 11490 -
11518 levels are likely to act as resistance and 11360 -
11320 levels are likely to act as support in coming trading
session.
Actionable points:
View
Neutral
Resistance Levels
11490 - 11518
Support Levels
11360 - 11320
Source: Falcon:
2
Daily Technical Report
October 04, 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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