Daily Technical Report
January 16, 2013
Sensex (19987) / NIFTY (6057)
Exhibit 1: Nifty Daily Chart
Yesterday, our benchmark indices opened marginally higher
on the back of strong quarterly results from the IT major
TCS. Subsequently markets traded with a positive bias to
close at a new 52 week high. Yesterday’s rally was led by the
rate sensitive sectors, the Realty and the Banking counters;
whereas Metal counters remained marginally under
pressure. The advance to decline ratio was in favor of
declining counters (A=1126 D=1154) (Source
-
Formation
The ’20-day EMA’ and the ’20-week EMA’ are placed at
19562 / 5942 and 18937 / 5749 levels, respectively.
On the daily chart, the benchmark indices are facing
resistance near the ‘Upward Sloping Trend Line’ drawn
by joining the highs of October 5, 2012 and December
11, 2012.
The daily ‘RSI - Smoothened’ is negatively poised.
We are also observing a ‘Negative Divergence’ in the
Source: Falcon:
daily ‘RSI’ momentum oscillator.
Actionable points:
Trading strategy:
View
Neutral
The strong closing on Monday was followed by a marginal
Resistance Levels
6070 - 6125
gap up opening yesterday. Further, we observed immense
Support Levels
6046 - 6018
buying interest during the second half of the session. In the
process, indices have now precisely tested ‘Upward Sloping
Trend Line’ (please refer exhibit) and also have confirmed yet
another ‘Negative Divergence’ in daily ‘RSI’ momentum
oscillator. Hence, going forward, we reiterate that traders
should consider reducing long positions and partial profit
booking in individual large cap counters near to the 19950 -
20100 / 6070 - 6125 . On the flipside, yesterday’s low of
19880 / 6018 would act as a key support level in coming
trading session. A fall below this level of 19880 / 6018 will
attract significant profit booking and the markets may then
head towards 19770 / 5970 level.
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Daily Technical Report
January 16, 2013
Bank Nifty Outlook - (12855)
Exhibit 2: Bank Nifty Daily Chart
Yesterday, Bank Nifty opened flat and traded in a narrow
range during the first half of the session. However, the
expectations of a generous rate cut by the RBI lifted the
sentiments in the second half and the index tested the
mentioned level of 12902 surpassing the range of 12838 -
12442 levels. Despite registering and closing at a new ’52-
Week’ high, we are witnessing a negative divergence in ‘RSI’
oscillator on the daily chart of Bank Nifty. Going forward,
this could be a sign of concern for the bulls. On the upside,
a sustainable move above the 12910 level would lead index
to higher levels of 13000. At this juncture, considering the
negative divergence, we advise traders to reduce long
positions and wait for declines to enter into the market.
Actionable points:
View
Neutral
Resistance levels
12910 - 13000
Support Levels
12808 - 12718
Source: Falcon:
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Daily Technical Report
January 16, 2013
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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