Daily Technical Report
March 07, 2013
Exhibit 1: Nifty Daily Chart
Sensex (19253) / NIFTY (5819)
Yesterday once again indices opened higher in line with
other global indices and moved marginally above the
mentioned resistance level of 19239 / 5820. However, the
actual trading range was extremely narrow and eventually
indices closed just below the 19239 / 5820 mark. During the
day, Realty, Capital goods and Metal counters were among
the major gainers whereas FMCG and Consumer Durables
ended on a losing side. The advance to decline ratio was
strongly in favor of advancing counters (A=1730 D=1116)
Formation
The ’20-day EMA’ and the ’20-week EMA’ are placed at
19308 / 5839 and 19175 / 5813 levels, respectively.
The monthly chart exhibits a ‘Bearish Engulfing’ pattern.
The monthly momentum oscillators are signaling a
negative crossover.
The level of the weekly ‘RSI’ momentum oscillator has
Source: Falcon:
now dropped below the 50 mark.
Indices have closed marginally above the ‘Downward
Sloping Trend Line’, drawn by joining two significant
Actionable points:
highs of 21109 / 6339 (high of November 05, 2010
weekly candle) and 19137 / 5816 (high of October 05,
View
Beaish below 5795
2012 weekly candle).
Expected targets
5748 - 5720
Resistance levels
5820 - 5850
Trading strategy:
For the second consecutive session, we witnessed a gap up
opening in our market and in-line with our expectations,
struggled around the mentioned resistance zone of '89-day
EMA' and '20-day EMA'. Both averages are placed at 19293
/ 5820 and 19322 / 5850, respectively. The daily candle
now resembles a 'Dragonfly Doji' Japanese candlestick
pattern. An occurrence of such pattern near resistance zone
indicates uncertainty and possibility of a corrective move if
indices sustain below yesterday's low of 19195 / 5795. This
may trigger intraday pessimism in the market. In this
scenario, indices may resume their existing down trend to test
18989 - 18931 / 5740 - 5712 levels. On the flipside,
19322 / 5850 mark remains to be a strong resistance for
the market. Only a move beyond this level would nullify the
negative impact of above mentioned technical evidences.
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Daily Technical Report
March 07, 2013
Exhibit 2: Bank Nifty Daily Chart
Bank Nifty Outlook - (11876)
Yesterday, for the second consecutive session Bank Nifty
opened with an upside gap and thereafter traded in a
narrow range throughout the session. The positive
crossover in ‘RSI’ momentum oscillator mentioned in our
previous report is still intact. However, the momentum
oscillators on the hourly chart are placed well inside the
overbought zone and some consolidation / correction in
the index cannot be ruled out. Any up move in the index
would be seen only if the index sustains above 11910
level. In this scenario the index is likely to rally towards
12042 - 12120 levels. On the downside 11715 - 11623
levels are likely to act as support for the day.
Actionable points:
View
Bearish Below 11820
Expected target
11715 - 11623
Resistance Levels
11910 - 12042
Source: Falcon:
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Daily Technical Report
March 07, 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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