Daily Technical Report
September 07, 2012
Sensex (17346) / NIFTY (5238)
Exhibit 1: Nifty Daily Chart
Once again yesterday markets opened on a flat note and
consolidated in a narrow range during the first half.
However, post midsession, indices picked up a strong
momentum on the back of optimistic opening in the
European markets only to pare their gains during the last
half an hour of trade. The IT, Teck and Auto sectors rallied;
whereas FMCG and Consumer Durables corrected sharply
during yesterday’s session. The advance to decline ratio was
in favor of advancing counters (A=1440 D=1339) (Source -
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
Yesterday, our markets remained muted during the first half
Resistance Levels
5279 - 5316
of the session. Subsequently, a strong opening in the
Support Levels
5215 - 5190
European markets influenced a shift in trading sentiment and
indices rallied nearly 1% from the lowest point of the day.
Going forward, we continue to mention the support zone of
17218 - 17123 / 5215 - 5190. Only 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. A move beyond
17560 / 5316 in today’s session, on the back of the
“Outright Monetary Transactions” program announced by
the ECB, may attract strong buying interest in the market. In
such a scenario, indices may rally towards 17712 / 5360
level.
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Daily Technical Report
September 07, 2012
Bank Nifty Outlook - (9893)
Exhibit 2: Bank Nifty Daily Chart
Yesterday, Bank Nifty opened on a flat note and traded in a
narrow range throughout the session. As expected the index
took support near its “200 day SMA”. We are now witnessing
a “Bullish Harami” candlestick pattern near this support
level. The mentioned pattern requires confirmation in the
form of closing above 9947 levels. Thus, if the index sustains
above yesterday’s high of 9947 then it is likely to rally
towards 10045 - 10100. On the downside, 9860 - 9814
levels are likely to act as support in coming trading session.
Actionable points:
View
Bullish above 9947
Expected Target Levels
10045 - 10100
Support Levels
9860 - 9814
Source: Falcon:
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Daily Technical Report
September 07, 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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