Daily Technical Report
October 18, 2012
Exhibit 1: Nifty Daily Chart
Sensex (18611) / NIFTY (5660)
We witnessed a gap up opening on the back of strong
overnight rally in European and US markets. However,
Indices pared early gains in the first half of trade and once
slipped marginally below the 18549 / 5435 mark. Recovery
in the last hour eventually led the market to close well
above18549 / 5435. The consumer Durables, Capital goods
and Auto sectors were among the major gainers; whereas
the Realty and Oil & Gas counters remained under pressure
throughout the session. The advance to decline ratio was in
favor of declining counters (A=1329 D=1543) (Source -
Formation
The ’20-day EMA’ and the ’20-week EMA’ are placed at
18582/ 5635 and 17840/ 5400 levels, respectively.
The monthly ‘RSI’ oscillator is moving higher from the 50
mark and the positive in ADX (9) indicator is intact.
The weekly ‘Stochastic’ oscillator is now signaling a
negative crossover.
The weekly chart depicts a ‘Bearish Engulfing’
Source: Falcon:
candlestick pattern.
The 38.2% and 50% Fibonacci Retracement levels of the
Actionable points:
rise from 17250 to 19138 / 5216 to 5815 are placed at
18416 / 5586 and 18194 / 5515, respectively.
View for the day
Neutral
Trading strategy:
Resistance Levels
5729 - 5757
Support Levels
5633 - 5586
Looking at the daily chart, it is observed that several attempts
by the bears to break the support zone of ’20-day EMA’ have
failed. Considering that there is no significant change in the
price structure, we reiterate that if indices sustain below
18535 / 5633, then they are like to slide lower to test next
support levels of 18416 / 5586 and 18194 / 5515, which
are 38.2% and 50% Fibonacci Retracement levels of the rise
from
17250 to
19138
/
5216 to
5815, respectively.
Conversely, 18886 / 5729 level remains to be a major
hurdle for the bulls. Only a move above this resistance may
open up the possibilities of moving to 18973 / 5757 levels.
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Daily Technical Report
October 18, 2012
Exhibit 2: Bank Nifty Daily Chart
Bank Nifty Outlook - (11358)
Yesterday, Bank Nifty opened on a flat note and
consolidated in a narrow range throughout the session.
Similar to the Benchmark Indices, there is no major
change in the chart structure. Hence, we continue with our
view that 11245 mark remains to be a key support level
for the index. Selling pressure is likely to intensify only if
the Bank Nifty sustains below this level. In this case the
index is likely to drift lower towards 11168 - 11123 levels.
On the upside 11537 is a major hindrance for the bulls.
Traders are advised to create fresh long positions only if
the index manages to surpass this key resistance.
Actionable points:
View for the day
Neutral
Resistance Levels
11537
Support Levels
11245 - 11168
Source: Falcon:
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Daily Technical Report
October 18, 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
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