Daily Technical Report
November 06, 2012
Exhibit 1: Nifty Daily Chart
Sensex (18763) / NIFTY (5704)
Considering most of the Asian indices, yesterday our
benchmark indices too started the week on quiet note.
Subsequently, extremely lackluster movement was seen
throughout the day as indices traded within the half a
percent range to close marginally above the psychological
level of 5700. Yesterday, the defensive sectors like, FMCG
and Heath Care were among the major gainers; whereas
the Power, Metal and Auto sectors were among the major
draggers. The advance to decline ratio was in favor of
declining counters (A=1356 D=1496) (Source
-
Formation
The ’20-day EMA’ and the ’20-week EMA’ are placed at
18625 / 5659 and 18060/ 5478 levels, respectively.
The monthly ‘RSI’ oscillator is moving higher from the 50
mark and the positive in the ADX (9) indicator is intact.
The negative crossover in the weekly ‘Stochastic’
Source: Falcon:
oscillator is still intact.
The daily momentum oscillators and ‘3 & 8 EMA’ are
Actionable points:
now signaling a positive crossover.
The 38.2% and 50% Fibonacci Retracement levels of the
View for the day
Bullish Above 5729
rise from 17250 to 19138 / 5216 to 5815 are placed at
Expected targets
5757 - 5816
18416 / 5586 and 18194 / 5515, respectively.
Support levels
5679- 5650
Trading strategy:
Similar to most of the trading sessions in the month of
October, yesterday’s session too was directionless and
sluggish. During the first half, indices corrected from the
highs and precisely tested the hourly ’20-EMA’ level of
18680 / 5680. The positive crossover of the daily ‘3 & 8
EMA’ and the momentum oscillators are still intact. Going
forward, we reiterate our view that if our benchmark indices
sustain above 18535 / 5729 level, then we are likely to
witness a rally towards 18973 - 19138 / 5757 - 5816. A
move beyond
19138
/
5816 would attract immense
optimism in the market and as a result, the up move may get
extended towards 19542 - 19812 / 5850 - 5945 levels. On
the flip side, yesterday’s low of 18683 / 5679 would act as
an immediate support. A breach of this level may trigger
intraday pessimism in the market.
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Daily Technical Report
November 06, 2012
Exhibit 2: Bank Nifty Daily Chart
Bank Nifty Outlook - (11475)
Yesterday, Bank Nifty opened on a flat note and traded in
a narrow range throughout the session to close with a
minimal gain of
0.13%. The momentum oscillator
“Stochastic” on the daily chart continues with a buy signal.
There is no significant change in price structure post
yesterday’s session and we continue to mention that the
index shows a “Falling Three” Candlestick pattern in the
making. However, the pattern requires a confirmation in
the form of a close below the 11174. On the upside
11543 - 11600 levels are likely to act as resistance and
11394 - 11298 levels are likely to act as support in
coming trading session.
Actionable points:
View for the day
Neutral
Resistance Levels
11543 - 11600
Support Levels
11394 - 11298
Source: Falcon:
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Daily Technical Report
November 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
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