Daily Technical Report
September 14, 2012
Exhibit 1: Nifty Daily Chart
Sensex (18021) / NIFTY (5435)
Yesterday, our markets traded in an extremely narrow range
to close near the previous day's close as traders preferred to
wait for the decision of US Federal Reserve before taking
further positions. On sectoral front, FMCG, PSU and Oil &
Gas counters remained positive during yesterday’s session;
whereas Health Care, Realty and Auto sectors remained
under pressure. The advance to decline ratio was in favor of
declining counters (A=1259 D=1586) (Source
-
Formation
The ’20-day EMA’ and the ’20-week EMA’ are placed at
17508 / 5298 and 17254 / 5226 levels, respectively.
Looking at the “Line Chart” it is clear that indices have
now confirmed the ‘Higher Top
- Higher Bottom’
formation on the weekly chart after August 28, 2009.
The daily ‘RSI’ momentum oscillator and ‘3 & 8 EMA’
have given a positive crossover.
The 50% Fibonacci Retracement level of the rise from
Source: Falcon:
16598 to 17973 / 5032 to 5449 is at 17285 / 5240.
Actionable points:
Trading strategy:
View
Bullish above 5449
Skepticism among market participants, prior to the Fed's
Expected Target Levels
5500 - 5550
announcement was expected in yesterday’s session. Going
Support Levels
5332
forward, in line with other Asian Markets, we expect the Nifty
to open on a strong footing. The Quantitative easing
announced by the Fed in yesterday’s meeting coupled with
the diesel price hike in domestic markets should ideally lead
to a significant rally. We reiterate our bullish stance on the
Index and are of the view that a move beyond 5449 would
indicate a high probability of a rally towards the next targets
of 5500-5550. Conversely, Tuesday's low of 17677 / 5332
is likely to act as a strong support for the coming few trading
sessions.
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Daily Technical Report
September 14, 2012
Bank Nifty Outlook - (10208)
Exhibit 2: Bank Nifty Daily Chart
Yesterday, Bank Nifty opened on a positive note and traded
in a narrow range to close near the initial opening level. For
the second consecutive session we are witnessing a
“Spinning Top” candlestick pattern indicating indecisiveness
at current levels. The momentum oscillator “RSI” on the daily
chart continue to be positive. Going forward, considering the
move in global markets and policy decisions by the US
Federal Reserve, we are of the view that a move beyond the
10275 mark on the Bank Nifty may lead to a further rally
towards the 10327 - 10414 levels. On the downside 10170
would act as decent support in coming few trading sessions.
Actionable points:
View
Bullish Above 10275
Expected Target Levels
10327 - 10414
Support Levels
10170
Source: Falcon:
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Daily Technical Report
September 14, 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
Angel Broking Pvt. Ltd.
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