Daily Technical Report
May 09, 2013
Exhibit 1: Nifty Daily Chart
Sensex (19990) / NIFTY (6069)
Yesterday, once again we witnessed a gap opening on the
back of positive cues from other Asian bourses. Indices then
corrected from their early morning high to slip marginally in
the negative territory. However, post midsession, indices
recovered gradually from the day’s low to eventually end the
session on a positive note. For the day Capital Goods and
Auto stocks ended with losses whereas FMCG counter was
among the major gainers. The advance to decline ratio was
Formation
The ’20-week EMA’ and the ’20-day EMA’ are placed at
19175/ 5811 and 19312/ 5861 levels, respectively.
Source: Falcon:
The weekly ADX (9) indicator and the ‘RSI-Smoothened’
oscillator have signaled a positive crossover.
Trading strategy:
Actionable points:
After a gap opening, indices remained under pressure
during the first half; but strong optimism towards the latter
View
Bearish Below 6024
part of the session pushed indices higher to end the session
Expected Targets
5980 - 5930
with half a percent gain. Yesterday’s daily candle resembles
Resistance Levels
6072 - 6111
a ‘Hanging Man’ Japanese candlestick pattern. An
occurrence of such pattern near important resistance level
indicates sign of caution for the bulls. However, at present, it
has occurred slightly lower from the previous top of 20204 /
6112 (high on January 29, 2013). The said pattern needs
confirmation in the form of closing below the low of the
candle. Also, the daily ‘RSI-Smoothened’ oscillator has now
entered an overbought territory. Hence, we are of the
opinion that we may witness a loss of current optimism if
indices manage to sustain below yesterday’s low of 19851 /
6024. In this scenario, indices may correct towards 19743 -
19542 / 5993 - 5930 levels. Conversely, any sustainable
move beyond yesterday’s high of 20038 / 6083 would
negate the pattern and indices may then rally towards 20204
/ 6112. We advise positional traders to book at least partial
profits and maintain strict stop losses for remaining long
positions.
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Daily Technical Report
May 09, 2013
Exhibit 2: Bank Nifty Daily Chart
Bank Nifty Outlook - (12643)
Yesterday, Bank Nifty opened on an optimistic note and
drifted lower during first half of the session. However, during
the second half buying interest led the index to close near the
initial opening level. In the process the index formed a
narrow range body formation indicating indecisiveness
prevailing at current levels. Thus only a move above 12700
would push the index higher towards 12780 - 12850 levels.
On the downside a breach of yesterday’s low of 12514
would result in a loss of positive momentum in Bank Nifty
and the Index may drift lower towards 12400 - 12330
levels.
Actionable points:
View
Neutral
Resistance Levels
12700 - 12780
Support Levels
12514 - 12400
Source: Falcon:
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Daily Technical Report
May 09, 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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