Daily Technical Report
January 08, 2013
Sensex (19691) / NIFTY (5988)
Exhibit 1: Nifty Daily Chart
Yesterday we witnessed a marginal gap up opening but
indices pared down their early gains and strong selling
pressure during the final hour of the trade led the Nifty to
close marginally below 6000 mark. The Capital Goods,
FMCG, Consumer Durables and Realty counters influenced
the price correction during the second half; whereas the
Metal and Health Care sectors ended in the positive territory.
The advance to decline ratio was in favor of advancing
Formation
The ’20-day EMA’ and the ’20-week EMA’ are placed at
19449 / 5914 and 18837 / 5723 levels, respectively.
On the daily chart, the benchmark indices are facing
resistance near the ‘Upward Sloping Trend Line’ drawn
by joining the highs of October 5, 2012 and December
11, 2012.
The last two daily candles resemble a ‘Hanging Man’
Source: Falcon:
Japanese candlestick pattern.
Actionable points:
Trading strategy:
View
Neutral
The week started on a positive note but indices faced
Resistance Levels
6042
tremendous resistance near the mentioned ‘Upward Sloping
Support Levels
5977 - 5960 - 5935
Trend Line’ (drawn by joining the highs of October 5, 2012
and December 11, 2012). Enhanced selling pressure in the
latter half of the session led indices to close in the negative
territory. The daily chart now depicts a ‘Bearish Engulfing’
pattern as yesterday’s real body has completely engulfed
Friday’s as well as Thursday’s candle. This is also supported
by the negative placement of the ‘RSI’ and ‘Stochastic’
oscillators. Hence, going forward, any sustainable move
below yesterday’s low of 19654 / 5977 may trigger near
term pessimism in the market. In this scenario, we can expect
a correction towards 19624 - 19509 / 5960 - 5935 levels.
On the flipside, 19857 / 6042 would now act a resistance in
coming trading session.
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Daily Technical Report
January 08, 2013
Bank Nifty Outlook - (12709)
Exhibit 2: Bank Nifty Daily Chart
Yesterday, the Bank Nifty opened near the mentioned
resistance level of 12838 and traded in a narrow range
during the first half. However, in line with the broader
markets, we witnessed substantial selling pressure in the
index during the last hour of trade. Similar to the charts of
the Benchmark Indices, we are now witnessing a negative
crossover in momentum oscillator “RSI” and “Stochastic” on
the daily chart of the Bank Nifty. The effect of these technical
indicators would be seen if the index sustains below
yesterday’s low of 12683. In this scenario the index is likely
to drift lower towards 12615 - 12580 levels. On the upside
12768 - 12802 levels are likely to act as resistance for the
day.
Actionable points:
View
Bearish Below 12682
Expected targets
12615 - 12580
Resistance Levels
12768 - 12802
Source: Falcon:
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Daily Technical Report
January 08, 2013
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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