Daily Technical Report
September 21, 2012
Exhibit 1: Nifty Daily Chart
Sensex (18349) / NIFTY (5554)
Yesterday, our benchmark indices opened in the red on the
back of weak global cues and political uncertainty on the
domestic front. Markets traded with pessimism throughout
the day but managed to close marginally above the support
level of 5550. On sectoral front profit booking was witnessed
in Metal, Consumer Goods and Power counters; whereas IT,
Teck and FMCG recovered some losses. The advance to
decline ratio was in favor of declining counters (A=1204
Formation
The ’20-day EMA’ and the ’20-week EMA’ are placed at
17923 / 5420 and 17468 / 5289 levels, respectively.
Indices have now confirmed a weekly ‘Higher Top -
Higher Bottom’ formation.
The daily ‘RSI’ momentum oscillator on weekly chart is
still showing strength.
The weekly chart depicts an “Upward Sloping Trend
Line” breakout above 17973 / 5449 level.
Source: Falcon:
The ADX (14) indicator on the Daily chart shows
possibility of further strength in the coming sessions. The
+ DI (positive directional index) is moving upwards
Actionable points:
supported by the ADX line, which has now moved up to
27.22 level. The ADX rise from 15 to 25 indicates that
View
Neutral
the uptrend is strengthening and positive momentum is
Resistance Levels
5582 - 5621
likely to accelerate further in the coming trading
Support Levels
5526
sessions.
Trading strategy:
As expected, our markets showed some weakness below
18469 / 5586 and tested the mentioned support level
18380 / 5550. However, considering the bigger picture, the
undertone remains bullish and this correction can only be
construed as the breather or a pull back of the recent rally.
For the day, the next support level for markets is seen at
18282 / 5526, which is the higher end of the upside gap
created on September 14, 2012. Conversely, 18444 -
18581 / 5582 - 5621 levels would act as a resistance in
coming trading session.
Traders are advised to adopt a buy on dips strategy and
have a stock specific approach with strict stop losses on
trading positions.
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Daily Technical Report
September 21, 2012
Exhibit 2: Bank Nifty Daily Chart
Bank Nifty Outlook - (10921)
Yesterday, Bank Nifty opened on a pessimistic note and
traded with negative bias throughout the day to close with a
loss of 1.11%. As mentioned in our previous reports the
index has consolidated and formed a “Narrow Range” body
formation. We are now witnessing a negative crossover in
“Stochastic” momentum oscillator on the daily chart coupled
with negative crossover in “RSI - Smoothened” oscillator on
the hourly chart. Thus, for the day, if the index sustains below
yesterday’s low of 10887 then it is likely to drift lower
towards 10797 - 10664 levels. On the upside 11032 -
11065 levels are likely to act as resistance in coming trading
session.
Actionable points:
View
Neutral
Resistance Levels
11032 - 11065
Support Levels
10797 - 10664
Source: Falcon:
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Daily Technical Report
September 21, 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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