Daily Technical Report
March 18, 2013
Exhibit 1: Nifty Daily Chart
Sensex (19428) / NIFTY (5873)
On Friday, indices opened on a flat note as indicated by the
in line with other Asian markets. Subsequently, indices pared
all gains to close in the negative territory. The Realty,
Banking and Oil & Gas counters were among the major
losers; whereas Consumer Durables was the only sector that
gained ground. The advance to decline ratio was in favor of
declining
counters
(A=1114 D=1754) (Source-
Formation
The ’20-day EMA’ and the ’20-week EMA’ are placed at
19410 / 5869 and 19244 / 5830 levels, respectively.
The weekly chart exhibits a ‘Bullish Engulfing’ pattern but
the monthly chart exhibits a ‘Bearish Engulfing’ pattern.
Indices have closed above the ‘Downward Sloping Trend
Line’, drawn by joining two significant highs of 21109 /
Source: Falcon:
6339 (high of November 05, 2010 weekly candle) and
19137 / 5816 (high of October 05, 2012 weekly
candle).
Actionable points:
Trading strategy:
The first half of the concluded week was undoubtedly
View
Bearish Below 5861
dominated by the bears. However, the second half turned
Expected target
5790 - 5750
out to be directionless as we witnessed very sharp
5946 - 5971
Resistance levels
movements on both sides. Indices have not confirmed the
weekly ‘Bullish Engulfing’ pattern mentioned in our earlier
report. Going forward, only a sustainable move beyond this
week’s high of 19755 / 5971 would confirm the above
mentioned pattern as well as the breakout from the probable
‘Inverse Head and Shoulder’ pattern. In such a scenario, we
may witness strong buying interest among market
participants. Indices may then resultantly rally towards
19768 - 19865 / 5991 - 6025 or even re-test the recent
swing high of 20204 / 6112. Conversely, the week’s low of
19179 / 5791 poses as a key support level in the coming
trading sessions. Any sustainable move below this level
would trigger immense pessimism in the market and indices
may re-test recent swing lows of 18931 - 18760 / 5712 -
5663.
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Daily Technical Report
March 18, 2013
Exhibit 2: Bank Nifty Daily Chart
Bank Nifty Outlook - (11817)
On Friday, Bank Nifty too opened flat in-line with our
benchmark indices and eventually index slipped as the day
progressed to close with a loss of nearly
1.70%. The
momentum oscillators ‘RSI’ on the daily and hourly chart is
near the 50 mark and is indicating a rise in volatility in
coming few sessions. The index has taken support on
Thursday near the 78.6% Fibonacci retracement of the current
rise. This level is likely to act as an intermediate support level
for the index. Only a sustainable move below the 11555
mark would lead to strong selling pressure in the index. On
the upside a move above the 12059 level would attract
further buying interest and the index may rally towards 12107
- 12183 levels. Traders are advised to stay light on positions
as the market nears the RBI monetary policy Tuesday.
Actionable points:
View
Bearish Below 11750
Expected Target
11555
Resistance Levels
12059 - 12107
Source: Falcon:
2
Daily Technical Report
March 18, 2013
Research Team Tel: 022 - 30940000
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Research Team
Shardul Kulkarni
-
Head - Technicals
Sameet Chavan
-
Technical Analyst
Sacchitanand Uttekar
-
Technical Analyst
Ankur Lakhotia
-
Technical Analyst
Angel Broking Pvt. Ltd.
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