Daily Technical Report
September 06, 2012
Sensex (17313) / NIFTY (5226)
Exhibit 1: Nifty Daily Chart
Yesterday, our benchmark indices opened with a downside
gap in-line with negative Asian bourses (Especially Hang
Seng). After a brief consolidation, indices corrected sharply
during the second half to close marginally above
5200
mark. Once again a strong selling pressure was seen in
Metal, Capital Goods and Banking sectors, whereas FMCG
and Teck ended marginally in the positive territory. The
advance to decline ratio was in favor of declining counters
Formation
The ’20-day EMA’ and the ’200-day SMA’ are placed at
17560 / 5316 and 16920 / 5120 levels, respectively.
Looking at the “Line Chart” it is clear that indices have
now confirmed the ‘Higher Top
- Higher Bottom’
formation on the weekly chart after August 28, 2009.
The weekly momentum oscillators’ viz., the RSI and the
Stochastic are signaling a negative crossover.
Source: Falcon:
Trading strategy:
Actionable points:
View
Neutral
Despite a decently positive closing on Tuesday’s session, our
markets failed to carry forward the same momentum. After a
Resistance Levels
5279 - 5316
gap down opening, indices continued to trade with negative
Support Levels
5215 - 5190
bias post midsession and eventually closed around the ’20-
week EMA’ placed at 17218 / 5215 level. Indices are now
hovering around a strong support zone of 17218 - 17123 /
5215 - 5190. Hence, a closing below 17123 / 5190 level
may augment further selling momentum in the markets. As a
result, indices may then slide towards 16892 / 5120 level.
Conversely, the resistance levels are seen at 17416 - 17560
/ 5279 - 5316 levels. We reiterate that only a sustainable
move above this level is likely to change the underlying
negative sentiment. The broader markets are substantially
negative and which sector will lead the market higher is the
question that remains unanswered.
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Daily Technical Report
September 06, 2012
Bank Nifty Outlook - (9828)
Exhibit 2: Bank Nifty Daily Chart
Yesterday, Bank Nifty opened on a pessimistic note and
selling pressure throughout the day led the index to close
near day’s low. The selling pressure intensified on the breach
of important support level of 9914. The index is currently
hovering around its “200 day SMA” currently at
9826
coupled with positive divergence in “RSI” momentum
oscillator on the hourly chart. Due to the above mentioned
reasons we advise traders to refrain from creating fresh short
positions. On the upside 9914 - 9976 levels are likely to act
as resistance. On the downside if the index sustains below
yesterday’s low of 9814 then it is likely to drift further
towards 9770 - 9718 levels.
Actionable points:
View
Neutral
Resistance Levels
9914 - 9976
Support Levels
9814 - 9770 - 9718
Source: Falcon:
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Daily Technical Report
September 06, 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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