Daily Technical Report
October 09, 2012
Exhibit 1: Nifty Daily Chart
Sensex (18709) / NIFTY (5676)
The week started on a flat note in-line with quiet global cues.
However, selling pressure during the second half of the
session eventually resulted in a closing well below
5700
mark. The fall was mainly led by profit booking in Oil & Gas
giant Reliance Industries coupled with some heavyweights in
Banking, Capital Goods and Realty sectors; whereas only
Health Care sector ended in the positive territory. The
advance to decline ratio was in favor of declining counters
Formation
The ’20-day EMA’ and the ’20-week EMA’ are placed at
18485 / 5600 and 17750 / 5380 levels, respectively.
The monthly ‘RSI’ oscillator is moving higher from the 50
mark and the ADX (9) indicator is now signaling a
positive crossover.
The daily ‘RSI’ and ‘Stochastic’ oscillators are signaling a
negative crossover.
Source: Falcon:
Trading strategy:
Actionable points:
Yesterday's session was completely dominated by the bears
as the benchmark indices struggled to give even a minor
View
Neutral
intraday bounce. The price movement was in-line with
Resistance Levels
5752
expectations as the negatively poised daily momentum
Support Levels
5666 - 5638
oscillators came into the action. As a result, our benchmark
indices breached the mentioned support level of 18740 /
5694 during the second half to register a low of 18684 /
5666. At present, the negative crossover in daily 'RSI-
Smoothened' oscillator indicates that if our markets sustain
below yesterday's low of 18684 / 5666 then a further
correction towards their next support levels of 18552 -
18291 / 5638 - 5534 can be expected. However, keeping in
mind the positive placement of monthly 'RSI' indicator and
the ADX (9) indicator, the intermediate trend remains intact
i.e. bullish. Going forward, yesterday's high of 18970 / 5752
level would act as a resistance in coming trading session. A
move beyond this resistance would signal that the selling
pressure will abate and a move towards 19138 / 5816 is on
the cards.
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Daily Technical Report
October 09, 2012
Exhibit 2: Bank Nifty Daily Chart
Bank Nifty Outlook - (11362)
Yesterday, Bank Nifty opened on a pessimistic note and
corrected lower as the day progressed to close near day’s
low. The “Dark Cloud Cover” candlestick mentioned in our
previous report has been confirmed. The momentum
oscillator “RSI” on the daily chart continues with its sell
signal. However, the support level of 11320 has not been
breached and traders holding long positions should
maintain a strict stop loss of 11320 on the index. A move
below 11320 will further drag the index lower to 11226 -
11124 levels. On the upside 11540 - 11745 levels is likely
to act as resistance in coming trading session.
Actionable points:
View
Neutral
Resistance Levels
11540 - 11745
Support Levels
11320 - 11226
Source: Falcon:
2
Daily Technical Report
October 09, 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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