Daily Technical Report
December 06, 2012
Exhibit 1: Nifty Daily Chart
Sensex (19392) / NIFTY (5901)
Yesterday, our benchmark indices opened marginally higher
in-line with strong cues from other Asian bourses (especially,
Hang Sang and Shanghai Composite). This resulted in the
Nifty edging above 5900 mark during the initial hour of the
session. However, the price action during the day was
lackluster similar to previous couple of trading sessions.
Realty and Metal sectors outperformed in yesterday’s trading
session; whereas the IT and Teck counters kept our market
under pressure. The advance to decline ratio was strongly in
favor of advancing counters (A=1688 D=1227) (Source -
Formation
The ’20-day EMA’ and the ’20-week EMA’ are placed at
18702 / 5687 and 18281/ 5552 levels, respectively.
On the weekly chart, we are witnessing a breakout from
‘Downward Sloping Trend Line’ joining two significant
swing high of 19811 / 5944 (April 2011) and 19137 /
5815 (Oct 2012) at 19050 / 5800 level.
The target of the daily ‘Channel’ pattern breakout comes
around 19500 / 5950 level.
Source: Falcon:
The weekly ‘Stochastic’ and the ‘RSI’ oscillators are now
signaling a positive crossover.
Actionable points:
Trading strategy:
Yesterday, we witnessed yet another session with lackluster
View for the day
Neutral
activity and a narrow trading range. Further, initial gap
Resistance Level
5918 - 5945
opening above the high of ‘Spinning Top’ candle has
Support Levels
5854 - 5800
negated the pattern. However, the daily chart now depicts yet
another ‘Narrow Range Body’ formation. Hence, the
uncertainty among market participants still persists. Going
forward, yesterday’s high of 19464 / 5918 will now act as a
resistance in coming trading session. Only a sustainable
move beyond this level, with strong volumes, may ultimately
push indices to our mentioned level of 19812 / 5945. On
the other hand, a breach of yesterday’s low would trigger
intraday pessimism in the market. In this case, we may see
weakness up to 19257 - 19000 / 5854 - 5800 levels.
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Daily Technical Report
December 06, 2012
Exhibit 2: Bank Nifty Hourly Chart
Bank Nifty Outlook - (12282)
Yesterday, Bank Nifty opened with an upside gap in line with
our benchmark indices and traded in a narrow range
throughout the session. The negative divergence in “RSI”
momentum oscillator on the hourly chart coupled with
overbought condition on momentum oscillator “Stochastic” on
daily chart mentioned in our previous report is still intact. The
index is now approaching the resistance zone 12335 -
12365, hence we believe that the ongoing consolidation
phase is likely to continue. Any pullback in the index would be
seen only if the index falls below 12053 level. On the upside
12335 - 12365 are likely to act as resistance and 12219 -
12106 levels are likely to act as support for the day. Traders
are advised not to create any fresh long positions in the index
at this point of time.
Actionable points:
View for the day
Neutral
Resistance Levels
12335 - 12365
Support Levels
12219 - 12106
Source: Falcon:
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Daily Technical Report
December 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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