Daily Technical Report
January 22, 2013
Sensex (20102) / NIFTY (6082)
Exhibit 1: Nifty Daily Chart
The week opened marginally higher on the back of better-
than-expected Q3 results from the index heavyweight
Reliance Industries. Subsequently, indices slipped into a
consolidation phase during the first half. However, sudden
buying near day’s low pushed indices higher to close in the
green. On sectoral front, Capital Goods, Oil & Gas and
FMCG counters were among the major gainers whereas;
Realty, Healthcare and Auto sectors ended in red. The
advance to decline ratio was in favor of declining counters
Formation
The ’20-day EMA’ and the ’20-week EMA’ are placed at
19731 / 5985 and 19059 / 5784 levels, respectively.
On the daily chart, the benchmark indices are facing
resistance near the ‘Upward Sloping Trend Line’ drawn
by joining the highs of October 5, 2012 and December
11, 2012.
We are also observing a ‘Negative Divergence’ in the
daily ‘RSI’ momentum oscillator.
Source: Falcon:
Actionable points:
Trading strategy:
View
Bearish below 6065
Yet another session ended with lackluster movement; but the
Expected Targets
6026 - 5988
intraday bias remained marginally positive. Since the last 2
Resistance Levels
6094 - 6125
trading sessions, indices are oscillating within the mentioned
trading range of 19950 - 20100 / 6050 - 6125. We are
now observing a ‘Narrow Range’ body formation on daily
chart. This indicates uncertainty among market participants.
Hence, considering this formation, we are of the opinion that
if indices sustain below yesterday’s low of 20056 / 6065,
then we may witness some intraday pessimism in the market.
In this case, a correction towards the 19918 / 6025 levels
can be expected. On the flipside, a sustainable move and
close beyond 20163 / 6094 would negate the bearish
implication of this pattern.
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Daily Technical Report
January 22, 2013
Bank Nifty Outlook - (12651)
Exhibit 2: Bank Nifty Daily Chart
Yesterday, Bank Nifty opened on a flat note and traded in a
narrow range throughout the session. For the third
consecutive session we are witnessing a narrow range body
formation. Looking at the momentum oscillators on the daily
and hourly chart we believe that the ongoing consolidation
in the index is likely to continue so long as the 12582 level
holds. Also, we reiterate our view that a breach of the 12582
level would trigger short term pessimism in the index and the
index is then likely to fall towards 12477 - 12394 levels. On
the upside
12690 - 12756 levels are likely to act as
resistance for the day.
Actionable points:
View
Bearish Below 12582
Expected Targets
12477 - 12394
Resistance Levels
12690 - 12756
Source: Falcon:
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Daily Technical Report
January 22, 2013
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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