Daily Technical Report
March 06, 2013
Exhibit 1: Nifty Daily Chart
Sensex (19143) / NIFTY (5784)
Yesterday, indices opened with a decent upside gap as
suggested by the SGX Nifty and continued to gain
momentum as the day progressed. We witnessed a decent
intraday rally of nearly one and half percent and the Nifty
closed marginally below 5800 mark. During the day, all the
sectors ended on a gaining side. The advance to decline
ratio was strongly in favor of advancing counters (A=1679
Formation
The ’20-day EMA’ and the ’20-week EMA’ are placed at
19372 / 5863 and 19175 / 5813 levels, respectively.
The monthly chart exhibits a ‘Bearish Engulfing’ pattern.
The monthly momentum oscillators are signaling a
negative crossover.
Source: Falcon:
The level of the weekly ‘RSI’ momentum oscillator has
now dropped below the 50 mark.
Actionable points:
Indices have closed marginally above the ‘Downward
Sloping Trend Line’, drawn by joining two significant
View
Neutral
highs of 21109 / 6339 (high of November 05, 2010
Support levels
5748 - 5720
weekly candle) and 19137 / 5816 (high of October 05,
Resistance levels
5820 - 5850
2012 weekly candle).
Trading strategy:
Yesterday indices opened higher above Monday's high of
18931 / 5712. As a result, existing short sellers or intraday
buyers rushed in to the market. We now have a confirmation
of the “Bullish Hammer” Japanese candlestick pattern
mentioned in yesterday’s report. Also, the daily 'RSI'
momentum oscillator is now signaling a positive crossover.
Nevertheless, indices are now approaching a strong
resistance zone of 19239 / 5820, which coincides with the
'89 EMA' in daily as well as hourly chart. Also, the market still
remains in a strong lower top lower bottom cycle. Hence,
only a sustainable move beyond 19239 / 5820 may attract
some more buying interest and we may witness an extended
move towards 19322 / 5850 levels. On the flipside, any
weakness around this resistance zone may reinforce the
selling pressure. Indices then may resume their existing down
trend to test 18989 - 18931 / 5740 - 5712 levels.
1
Daily Technical Report
March 06, 2013
Exhibit 2: Bank Nifty Daily Chart
Bank Nifty Outlook - (11792)
Yesterday, Bank Nifty opened with an upside gap in line
with our benchmark indices and gained strength as the
day progressed to close well inside the positive territory.
We had been mentioning in our previous reports that the
momentum oscillators on the daily chart are placed in
oversold condition and hence creation of fresh short
positions should be avoided. At this juncture we are
witnessing positive crossover in ‘RSI’ momentum oscillator
on the daily chart. The effect of this technical tool would be
seen if the index sustains above the 11814 level. In this
scenario the index is likely to rally towards 11910 - 11940
levels. On the downside 11715 - 11624 levels are likely to
act as support for the day.
Actionable points:
View
Neutral
Resistance Levels
11814 - 11910
Support levels
11715 - 11624
Source: Falcon:
2
Daily Technical Report
March 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
Ankur Lakhotia
-
Technical Analyst
Angel Broking Pvt. Ltd.
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