Daily Technical Report
February 06, 2013
Exhibit 1: Nifty Daily Chart
Sensex (19660) / NIFTY (5957)
Yesterday, our benchmark indices opened gap down in line
with global markets. Subsequently, indices oscillated within
the narrow range of less than half a percent. However the
bias was negative throughout the session. Apart from
Healthcare counters, all the sectoral indices ended in red.
The Consumer Durables, FMCG and Power sectors were the
biggest losers for the day. The advance to decline ratio was
strongly in favor of declining counters (A=819 D=1417)
Formation
The ’20-day EMA’ and the ’20-week EMA’ are placed at
19839 / 6011 and 19178 / 5819 levels, respectively.
On the daily chart, the benchmark indices are facing
resistance near the ‘Upward Sloping Trend Line’ drawn
by joining the highs of October 5, 2012 and January
18, 2012.
The weekly ‘RSI’ momentum oscillator as well as the
Daily ‘ADX (9)’ indicator are now signaling a negative
Source: Falcon:
crossover.
The ‘Hanging Man’ Japanese Candlestick pattern on the
weekly chart has been confirmed.
Actionable points:
View
Bearish Below 5940
Trading strategy:
Expected Target
5897
As expected, yesterday we witnessed a gap down opening on
Resistance Levels
5970 - 6039
the back of negative cues from US and European bourses. In
the process, indices missed our initial target of 19596 /
5940 by a whisker. For the coming trading session, 19596 /
5940 would act as an important support level for the market.
Any sustainable move below this level would augment
existing negative momentum. In this case, our indices may
slide towards their next support level of 19406 / 5897. On
the flipside, 19717 / 5970 - 19903 / 6039 levels would act
as resistance in coming trading session.
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Daily Technical Report
February 06, 2013
Exhibit 2: Bank Nifty Daily Chart
Bank Nifty Outlook - (12467)
Yesterday, in line with our benchmark indices Bank Nifty too
opened with a downside gap and traded in a narrow range
throughout the session and closed below the support level of
12500. The ‘Trend line Break down’ mentioned in our
previous report was followed by the negative crossover of
‘5&20’ day EMA during yesterday’s trading session. Hence,
we reiterate our view that the index may test the lower levels
of 12265 - 12140 if it sustains below yesterday’s low of
12415. However, due to oversold condition of momentum
oscillators on hourly charts, a possibility of consolidation or a
minor pullback from current levels cannot be ruled out. It
would be important to note that the primary bias remains
negative. On the upside, 12502 - 12633 levels, could act as
resistance in coming trading session.
Actionable points:
View
Bearish Below 12415
Expected Targets
12265 - 12140
Resistance Levels
12502 - 12633
Source: Falcon:
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Daily Technical Report
February 06, 2013
Research Team Tel: 022 - 30940000
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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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