Daily Technical Report
December 21, 2012
Exhibit 1: Nifty Daily Chart
Sensex (19454) / NIFTY (5916)
Yesterday, our benchmark indices opened on flat note and
witnessed a mild correction during the first half. However, a
recovery in the second half led the indices to close firmly
above 5900 mark. The Gujarat and Himachal Pradesh
assembly election’s results had no significant impact on the
market sentiments. During the session, Consumer Durables,
Auto and Capital Goods sectors remained under pressure.
However, the Metal, Teck and IT counters ended with minor
gains. The advance to decline ratio was strongly in favor of
declining counters (A=1312 D=1578) (Source
-
Formation
The ’20-day EMA’ and the ’20-week EMA’ are placed at
19209 / 5844 and 18573 / 5642 levels, respectively.
On the weekly chart, we are witnessing a breakout from
‘Downward Sloping Trend Line’ joining two significant
swing highs of 19811 / 5944 (April 2011) and 19137 /
5815 (Oct 2012) at 19050 / 5800 level.
The 38.20% and 50% Fibonacci retracement levels of
the rise from 18255 / 5548 (low on November 20,
Source: Falcon:
2012) to 19612 / 5965 (high on December 11, 2012)
are at 19100 - 18930 / 5806 - 5755, respectively.
Actionable points:
Trading strategy:
Looking at the price action of previous two trading sessions,
View for the day
Neutral
it can be construed that our markets are struggling for
Resistance Level
5965
direction at this juncture. Yesterday’s price pattern on the
Support Levels
5881 - 5823
daily chart suggests indecisiveness prevailing at current
levels. Also, the momentum oscillators on the daily and
hourly chart are portraying a mix picture. Hence we reiterate
our view that 19612 / 5965 level remains to be a key
resistance for the bulls. On the flipside, a breach of
yesterday’s low of 19336 / 5881 would trigger intraday
pessimism in the market. In this scenario, indices may test
the next support level of 19149 / 5823.
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Daily Technical Report
December 21, 2012
Exhibit 2: Bank Nifty Daily Chart
Bank Nifty Outlook - (12487)
Yesterday, Bank Nifty opened on a flat note and traded with
extreme volatility throughout the session. We are now
witnessing a minor negative divergence in momentum
oscillator “RSI” on the daily chart. Thus we reiterate our view
that the Bank Nifty is likely to undergo further consolidation in
the range of 12570 - 12197. Going forward yesterday’s low
of 12385 is a key support level for intraday traders. A
sustainable move below this level may lead the index to drift
lower towards 12306 - 12277 level. On the other hand, a
move above 12570 level will attract buying interest among
the market participants. In this scenario the index is likely to
test 12700 level.
Actionable points:
View for the day
Neutral
Resistance Levels
12570
Support Levels
12385 - 12306
Source: Falcon:
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Daily Technical Report
December 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
Angel Broking Pvt. Ltd.
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