Daily Technical Report
January 17, 2013
Sensex (19818) / NIFTY (6002)
Exhibit 1: Nifty Daily Chart
Yesterday's session began on muted note on the back of
mixed global cues. However, selling pressure was seen
throughout the session as individual Large cap counters in
the Auto, Metal and Banking space corrected substantially.
Oil & Gas was the only sector to end with marginal gains.
The advance to decline ratio was strongly in favor of
declining counters (A=938 D=2001) (Source
-
Formation
The ’20-day EMA’ and the ’20-week EMA’ are placed at
19623 / 5957 and 18928 / 5747 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
daily ‘RSI’ momentum oscillator.
Source: Falcon:
Actionable points:
Trading strategy:
As expected and mentioned in our earlier reports, Indices
View
Bearish Below 5992
faced strong resistance near the 'Upward Sloping Trend Line'
Expected Targets
5970 - 5941 - 5919
(Please refer exhibit 1). This was supported by the 'Negative
Resistance Levels
6036 - 6056
Divergence' in daily 'RSI' momentum oscillator. Considering
the technical indicators and price pattern in the chart of the
Index, supported by the bearish patterns in the charts of
individual index heavyweights, we expect further selling
pressure if indices sustain below yesterday's low of 19783 /
5992. In this scenario, we expect the markets to test recent
low of 19619 / 5941. On the flipside, yesterday's high of
20009 / 6056 would act as resistance in coming trading
session.
1
Daily Technical Report
January 17, 2013
Bank Nifty Outlook - (12639)
Exhibit 2: Bank Nifty Daily Chart
Yesterday, Bank Nifty opened on a flat note and selling
pressure throughout the day led the index to close near day’s
low. At this juncture the index is hovering around its
intermediate support at 12582 level. The RSI momentum
oscillator continues to show negative divergence. The 20 day
moving average too coincides with this support and thus a
breach below this level would trigger further selling pressure
in the index. In this case, we expect a correction towards
12477 - 12394 levels. On the upside 12772 - 12820 levels
are likely to act as resistance for the day.
Actionable points:
View
Bearish Below 12582
Expected Targets
12477 - 12394
Resistance Levels
12772 - 12820
Source: Falcon:
2
Daily Technical Report
January 17, 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
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