Daily Technical Report
March 08, 2013
Exhibit 1: Nifty Daily Chart
Sensex (19414) / NIFTY (5863)
Yesterday, indices opened on a muted note in-line with
mixed global cues and then slipped into consolidation mode
to trade within half a percent range for major part of the
session. However, we witnessed a sudden spurt during the
last hour and markets closed at the highest point of the day.
During the day, most of the sectors ended on the gaining
side except for Consumer Durables and Metal counters
which ended with marginal losses. The advance to decline
ratio was in favor of advancing counters (A=1523 D=1307)
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.
Source: Falcon:
The level of the weekly ‘RSI’ momentum oscillator has
now dropped below the 50 mark.
Indices have closed marginally above the ‘Downward
Actionable points:
Sloping Trend Line’, drawn by joining two significant
highs of 21109 / 6339 (high of November 05, 2010
View
Neutral
weekly candle) and 19137 / 5816 (high of October 05,
2012 weekly candle).
Support Levels
5795
Resistance levels
5880 - 5921
Trading strategy:
Yesterday, Indices opened flat and then soared sharply
during the latter part of the session. In this process, indices
managed to traverse the stiff resistance zone '20-day EMA' as
well as '89-day EMA'. This up move was supported by the
humongous volumes in Nifty future during the last half an
hour of the session. As a result, indices eventually closed
convincingly above the stiff resistance of 19322 / 5850. We
are now observing a positive crossover in daily 'RSI
-
Smoothened' momentum oscillator and the 'ADX 9' indicator.
Also, a closing above '20-day EMA' indicates possibility of a
further upside in coming trading session if the markets trade
convincingly above yesterday’s high of 19466 / 5880. In this
scenario we may witness a rally towards 19554 - 19620 /
5920 - 5950. On the flipside, 19322 - 19239 / 5850 -
5820 would act as a key support for our market. Only a
move below Wednesday's low of 19195 / 5795 may result
into a loss of optimism seen during yesterday's session.
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Daily Technical Report
March 08, 2013
Exhibit 2: Bank Nifty Daily Chart
Bank Nifty Outlook - (11970)
Yesterday, Bank Nifty opened on a flat note in line with
our benchmark indices and traded in a narrow range
during major part of the session. However, buying interest
during the last hour of trade led the index to cross the stiff
resistance of 11910 and headed towards the 12000 mark.
On the hourly chart we are now witnessing a trend line
breakout and clear signs of ‘Higher Top Higher Bottom’.
The positive momentum is likely to continue if the index
sustains above the 12040 level. In this scenario the index
is likely to rally towards 12135 - 12250 mark. On the
downside 11852 - 11819 levels are likely to act as
support for the day.
Actionable points:
View
Bullish Above 12040
Expected target
12135 - 12250
Support Levels
11852 - 11819
Source: Falcon:
2
Daily Technical Report
March 08, 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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