Daily Technical Report
October 19, 2012
Exhibit 1: Nifty Daily Chart
Sensex (18792) / NIFTY (5719)
Yesterday we witnessed a gap up opening on the back of
strong cues from global markets and strong buying during
the second half pushed our indices higher to close on a
strong footing. The rally was mainly dominated by the
interest sensitive sectors like, Realty and Banking along with
Consumer Durables and Autos. Only the Health Care sector
ended with nominal losses. The advance to decline ratio was
strongly in favor of advancing counters (A=1727 D=1125)
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’
candlestick pattern.
The 38.2% and 50% Fibonacci Retracement levels of the
Source: Falcon:
rise from 17250 to 19138 / 5216 to 5815 are placed at
18416 / 5586 and 18194 / 5515, respectively.
Actionable points:
Trading strategy:
View for the day
Bullish above 5729
Finally, bulls had something to cheer about as we witnessed
Expected Targets
5757 - 5807
a sharp intraday rally during yesterday’s session. We had
Support Levels
5633
mentioned that the ’20-day EMA’ is proving out to be a
major hurdle for the bears and yesterday’s unexpected up
move further strengthens this point. However, the bulls are
yet to conquer the stiff resistance level of 18886 / 5729.
Only a move above this level would bring clarity of the trend
and higher levels of 18973 - 19107 / 5757 - 5807 can be
expected. Conversely, 18535 / 5633 level would act as
strong and crucial support in coming trading sessions. A
close below this level would certainly trigger short term
pessimism in the market. In that scenario, the markets may
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.
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Daily Technical Report
October 19, 2012
Exhibit 2: Bank Nifty Daily Chart
Bank Nifty Outlook - (11586)
Yesterday, Bank Nifty opened on an optimistic note and
gained momentum as the day progressed to close near
day’s high. The rally was mainly driven by banking heavy
weights SBI, Axis and PSU banks due to which the bulls
finally managed to give a convincing close above 11537
level. The momentum oscillator “RSI” and “Stochastic” on
the daily chart are positively poised indicating probability
of further upside in coming trading sessions. Thus if the
index sustains above yesterday’s high of 11595 then it is
likely to rally towards 11686 - 11745 level. On the
downside 11508 - 11447 levels are likely to act as
support for the day.
Actionable points:
View for the day
Bullish Above 11595
Expected Targets
11686 - 11745
Support Levels
11508 - 11447
Source: Falcon:
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Daily Technical Report
October 19, 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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