Daily Technical Report
June 06, 2013
Exhibit 1: Nifty Daily Chart
Sensex (19568) / NIFTY (5924)
Yesterday, once again we witnessed a flat opening but
subsequently the Nifty slipped slightly below the
psychological level of 5900 during the initial hour of the
trade. However, post mid-session indices recovered from the
lows and traded with narrow trading range for rest of the
session. During the session, the Oil & Gas and the Realty
counters defended our benchmark indices; whereas the IT
and the FMCG sectors remained under pressure throughout
the session. The advance to decline ratio was marginally in
favor of declining counters. (A=1083 D=1256)(Source-
Formation
The ’20-week EMA’ and the ’20-day EMA’ are placed at
19410/ 5874 and 19900/ 6041 levels, respectively.
The ’89-day EMA’ and the ‘200-day SMA’ are placed at
19443/ 5895 and 19048 / 5776, respectively.
Source: Falcon:
The weekly ‘RSI’ and ‘Stochastic’ momentum oscillators
are negatively poised.
Actionable points:
The ‘Bearish Engulfing’ Japanese candlestick pattern on
weekly chart is still intact.
View
Bearish Below 5880
The monthly chart now depicts a ‘Shooting Star’
Expected Targets
5850 - 5820
Japanese candlestick pattern.
Resistance level
5935 - 5982
Trading strategy:
In our previous report, we had mentioned a strong support
zone of ‘Downward Sloping Trend Line’ and daily ’89 EMA’
placed at 19443 / 5895. Yesterday, during the initial hour of
the session, Nifty sneaked marginally below
5895 but
immediately bounced back to eventually close half a percent
higher from the day’s low (Sensex bounced from 19451).
Considering yesterday’s price action, we are of the opinion
that any sustainable move beyond yesterday’s high of 19605
/ 5935 may push indices further higher to test 19695 -
19743 / 5965 - 5982 levels. On the downside, we reiterate
our view that a closing below 19443 / 5895 would trigger
strong pessimism in the market. In that case, indices may
slide towards 19360 / 5850 level.
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Daily Technical Report
June 06, 2013
Exhibit 2: Bank Nifty Daily Chart
Bank Nifty Outlook - (12289)
In-line with our benchmark indices, the Bank Nifty too
opened quietly and immediately fell marginally below the
daily ’89 EMA’ support level of 12270. As expected, this
technical indicator provided a decent support for the index
and eventually the index bounced back to close marginally
above the ’89 EMA’. Considering the current daily candle,
and the placement of the momentum oscillators, we can
infer that if the Bank Nifty sustains above yesterday’s high
of 12347, then we may witness an intraday rally towards
12435 - 12521 levels. On the flipside, we continue to
maintain our stance that only a closing below 12188 may
reinforce the negative momentum.
Actionable points:
View
Bearish Below 12188
Expected Targets
12000- 11750
Resistance Level
12347 - 12435
Source: Falcon:
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Daily Technical Report
June 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
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