Daily Technical Report
March 20, 2013
Exhibit 1: Nifty Daily Chart
Sensex (19008) / NIFTY (5746)
Yesterday, indices opened marginally higher as indicated by
the SGX Nifty but started sliding lower in the first hour itself
to eventually break the previous low of 19232 / 5814 just
before the midsession. The political uncertainty and other
litigations with regards to Bharti Airtel caused significant
damage to the bulls. This negative momentum continued
throughout the day and markets closed with one and half
percent loss. There was no sector in positive territory and
even the defensives like FMCG and HealthCare ended with
marginal losses. The advance to decline ratio was strongly
in favor of declining counters (A=904 D=1958) (Source-
Formation
The ’20-day EMA’ and the ’20-week EMA’ are placed at
Source: Falcon:
19362 / 5854 and 19221 / 5822 levels, respectively.
Trading strategy:
Actionable points:
Yesterday, during the opening trade indices tested the
View
Bearish Below 5712
mentioned resistance zone of
19396
/
5861 and
Expected target
5663
immediately drifted lower to test Monday’s low of 19232 /
Resistance levels
5791 - 5817
5814. High volatility was seen just before the announcement
of ‘RBI Monetary’ policy. However, the RBI policy was
overshadowed as the market witnessed a sudden fall after
DMK chief M Karunanidhi quit the congress-led UPA
government expressing disappointment on India’s stand over
Sri Lanka at the UNHRC (United Nation Human Right
Council). This triggered immense pessimism in the market
and indices tested March 05, 2013 low of 18943 / 5722 to
close marginally above day’s low. Going forward, if indices
sustain below 18930 / 5712 (high on March 04, 2013), then
we may witness continuation of the current down move. In
this case, indices may re-test recent swing low of 18760 /
5663. On the flipside, 17179 - 19244 / 5791 - 5817 levels
would act as intraday resistance in coming trading session.
1
Daily Technical Report
March 20, 2013
Exhibit 2: Bank Nifty Daily Chart
Bank Nifty Outlook - (11508)
Yesterday, Bank Nifty opened on a flat note in line with
our benchmark indices and drifted lower post RBI
monetary policy announcement to close with a loss of
nearly 2%. At this juncture the index is at the trend line
support formed by joining the significant lows of
November 19, 2012 and February 28, 2012. This trend
line is the Neckline of a Bearish Head and Shoulder
pattern and a close below 11401 would confirm the said
pattern. This would lead to immense pessimism in the
index and in this scenario the index is likely to drift lower
towards 11256 - 11125 levels. On the upside 11582 -
11626 levels are likely to act as resistance for the day.
Actionable points:
View
Bearish Below 11401
Expected Target
11256 - 11125
Resistance Levels
11582 - 11626
Source: Falcon:
2
Daily Technical Report
March 20, 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
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