Daily Technical Report
January 23, 2013
Sensex (19982) / NIFTY (6049)
Exhibit 1: Nifty Daily Chart
Yesterday’s session started on a quiet note in-line with mixed
global cues. Indices then immediately moved higher and in
the process, the Nifty crossed psychological level of 6100.
However, just before the midsession, we observed immense
selling pressure and markets pared all gains to eventually
close in negative territory. Although all the sectoral indices
contributed to yesterday’s correction, the Realty, Consumer
Durables and FMCG counters corrected the most. The
advance to decline ratio was strongly in favor of declining
Formation
The ’20-day EMA’ and the ’20-week EMA’ are placed at
19755 / 5991 and 19047 / 5781 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 6041
Yesterday, indices initially moved higher towards the
Expected Targets
6026 - 5988
‘Upward Sloping Trend Line’ shown in the chart. As
Resistance Levels
6081 - 6102
expected, this trend line acted as a strong resistance for the
market. As a result, indices slipped very sharply during the
second half. In the process, indices have eventually closed
below Monday’s low of
20056
/
6065, fulfilling a
characteristic of ‘Bearish Narrow Range Body’ formation.
Considering bearish implication on this pattern coupled with
the negative crossover in daily ‘3 & 8 EMA’ and hourly ‘ADX
(9)’ indicator, we can expect a correction towards the 19918
- 19783 / 6025 - 5988 levels. On the flipside, yesterday’s
high of 20157 / 6102 would now act a resistance in coming
trading session.
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Daily Technical Report
January 23, 2013
Bank Nifty Outlook - (12574)
Exhibit 2: Bank Nifty Daily Chart
Yesterday, Bank Nifty opened on a flat note and headed
higher during the initial part of trade. However, selling
pressure near the resistance level of 12756 led the index to
close below the strong support level of 12582. Thus going
forward we expect the Bank Nifty to correct further over the
next few sessions. On the downside, 12427 / 12366 may act
as support levels over the next few sessions. On the upside
yesterday’s high of 12748 is now expected to act as a stiff
resistance for the Bank Nifty.
Actionable points:
View
Bearish Below 12544
Expected targets
12427 - 12366
Resistance level
12748
Source: Falcon:
2
Daily Technical Report
January 23, 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
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