Daily Technical Report
February 14, 2013
Exhibit 1: Nifty Daily Chart
Sensex (19608) / NIFTY (5933)
Yesterday, our benchmark indices opened with a gap and
then moved further higher during the initial hour of the
session to precisely test the '20-day EMA'. However, markets
pared down most of the early gains due to immense selling
pressure in the second half to eventually close with very
nominal gains. Power, Metals and Reality counters were
among the major losers in yesterday’s trading session.
Whereas IT and Teck stocks were on the gaining side. The
advance to decline ratio was strongly in favor of declining
Formation
The ’20-day EMA’ and the ’20-week EMA’ are placed at
19711 / 5972 and 19200 / 5824 levels, respectively.
The Nifty has broken down from the ‘Upward Sloping
Trendline’ (as shown in the chart).
The weekly ‘RSI Smoothened’ is now signaling a
negative crossover.
Source: Falcon:
Actionable points:
Trading strategy:
Tuesday strong closing followed by an optimistic opening
View
Bearish Below 5922
and indices carried this positive momentum throughout the
Expected Targets
5879 - 5840
first
half. Nevertheless, as expected, indices faced
Resistance Levels
5953 - 5979
tremendous resistance near '20-day EMA' placed at 19711 /
5972. Hence, we witnessed considerable correction post mid
- session. The daily chart now depicts a 'Narrow Range Body'
formation. The occurrence of said pattern near '20-day EMA'
indicates uncertainty among market participants. Going
forward, any sustainable move below yesterday's low of
19574 / 5922 may trigger further pessimism in the market.
In this scenario, indices may slide towards the recent swing
low of 19414 / 5879. On the flipside, any sustainable move
beyond yesterday's high of 19723 / 5970 would negate the
pattern and indices may then rally towards 19768 - 19865 /
5991 - 6025.
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Daily Technical Report
February 14, 2013
Exhibit 2: Bank Nifty Daily Chart
Bank Nifty Outlook - (12385)
Yesterday, Bank Nifty opened on a flat note and traded in a
narrow range during first half of the session. However, in
line with the benchmark indices selling pressure in the
second half led the index to close with a marginal loss of
0.16%. The ‘Inside day’ candlestick pattern mentioned in our
previous reports still hold it significance and will be negated
if the index closes below 12245 level. Thus going forward,
although the primary bias remains negative, we believe that
the ongoing consolidation is likely to continue so long as the
12245 level holds. On the upside 12500 - 12533 levels are
likely to act as resistance and 12337 - 12301 levels are
likely to act as support for the day.
Actionable points:
View
Neutral
Resistance Levels
12500 - 12533
Support Levels
12337 - 12301
Source: Falcon:
2
Daily Technical Report
February 14, 2013
Research Team Tel: 022 - 30940000
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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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