Daily Technical Report
January 25, 2013
Sensex (19924) / NIFTY (6019)
Exhibit 1: Nifty Hourly Chart
Yesterday, indices once again opened on a flat note in-line
with quiet global cues and traded with a negative bias
throughout the session to eventually close around the lowest
point of the day. Again Realty sector was the worst performer
(-4%) due to sell off in HDIL which ended 22% lower
followed by Auto and Power counters. FMCG, IT and Capital
Goods sectors provided decent support to the markets. The
advance to decline ratio was strongly in favor of declining
Formation
The ’20-day EMA’ and the ’20-week EMA’ are placed at
19794 / 5999 and 19042 / 5778 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:
Trading strategy:
Actionable points:
We had mentioned in our earlier report that a sharp bounce
View
Bearish Below 6008
during the final hour on Wednesday can be considered as a
Expected Targets
5988 - 5941
pull back towards the ‘Upward Trend Line’ resistance on
Resistance Levels
6046 - 6065
hourly chart. Very much in-line with our expectations, indices
opened near this resistance level and drifted lower to close
below the mentioned support level of 19918 / 6025. We are
now observing that daily ‘3 & 8 EMA’ is on the verge of
signaling a negative crossover. Hence, despite indices are
now approaching ’20-day EMA’, there is a possibility of
further corrective move in coming sessions. Going forward, if
indices sustain below yesterday’s low of 19884 / 6008, then
we may witness continuation of hourly negative trend and
indices then may slip towards 19783 - 19597 / 5988 -
5941 levels. On the flipside, yesterday’s high of 20072 /
6065 would now act an immediate resistance in coming
trading session.
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Daily Technical Report
January 25, 2013
Bank Nifty Outlook - (12561)
Exhibit 2: Bank Nifty Daily Chart
Yesterday, Bank Nifty opened on a flat note and traded with
extreme volatility throughout the session. Yesterday’s
candlestick pattern is an “Inside Day” as the high and low of
the session is within the range of the high and low of the
previous session. As there is no major change in the chart
structure we reiterate our view that Wednesday's low of
12509 is the key support level for the index. A move below
this level would lead to a further fall towards 12394 -
12266. On the flipside yesterday's high of 12663 is likely to
act as major resistance for the index. A move above this
would enhance buying interest among market participants.
Actionable points:
View
Neutral
Resistance Levels
12663 - 12696
Source: Falcon:
Support Levels
12509 - 12394
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Daily Technical Report
January 25, 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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