Daily Technical Report
January 18, 2013
Sensex (19964) / NIFTY (6039)
Exhibit 1: Nifty Daily Chart
Yesterday's session opened marginally on the higher side in-
line with mixed global cues. Markets remained choppy in the
first half but the Government’s decision to allow small price
increases in diesel was seen as positive. As a result, indices
closed well inside the positive territory. Oil & Gas counters
were the biggest gainers followed by Realty and Teck sectors.
The Capital Goods and Healthcare counters remained under
pressure. The advance to decline ratio was marginally in
favor of declining counters (A=1101 D=1137) (Source -
Formation
The ’20-day EMA’ and the ’20-week EMA’ are placed at
19655 / 5965 and 18942 / 5750 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.
Source: Falcon:
We are also observing a ‘Negative Divergence’ in the
daily ‘RSI’ momentum oscillator.
Actionable points:
View
Neutral
Trading strategy:
Resistance Levels
6070 - 6125
Considering the corrective session on Wednesday, it was very
Support Levels
5992 - 5941
surprising to have a positive closing yesterday. The rally was
mainly led by the index major heavyweight Reliance
Industries along with all OMC companies. Going forward,
considering a strong resistance near the 'Upward Sloping
Trend Line' (Please refer exhibit
1) and the 'Negative
Divergence' in daily 'RSI' momentum oscillator, we continue
to remain cautious on market and any bounce towards
20037 - 20210 / 6070 - 6125 should be used to exit long
positions. The support is seen at 19783 / 5992. Markets are
likely to remain volatile as major index heavyweights such as
Reliance, HDFC Bank, and ITC declare their earnings for the
quarter in today’s session.
1
Daily Technical Report
January 18, 2013
Bank Nifty Outlook - (12650)
Exhibit 2: Bank Nifty Daily Chart
Yesterday, Bank Nifty opened on a pessimistic note and
traded in a narrow range throughout the session. Despite the
positive closing on the Benchmark Index, the Bank Nifty
remained subdued. We continue to witness Negative
divergence on the daily charts and expect further
consolidation / correction in the index. A breach of the
12582 level, which coincides with the
20 day moving
average, would trigger short term pessimism in the index
and we may witness a fall towards the 12477 / 12394
levels. On the upside 12715 - 12784 levels are likely to act
as resistance for the day.
Actionable points:
View
Bearish Below 12582
Expected Targets
12477 - 12394
Resistance Levels
12715 - 12784
Source: Falcon:
2
Daily Technical Report
January 18, 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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