Daily Technical Report
October 26, 2012
Exhibit 1: Nifty Daily Chart
Sensex (18759) / NIFTY (5705)
Similar to the previous trading sessions, yesterday once
again our benchmark indices traded in a narrow range
throughout the day. Despite F&O expiry, our markets were
directionless and traded with choppiness to close just above
the 5700 mark. On sectoral front, we witnessed a mixed
scenario where, Realty, Healthcare and Teck counters ended
in red. However, Auto, Consumer Goods and Banking sector
provided some support to the indices. The advance to
decline ratio was in favor of declining counters (A=1288
Formation
The ’20-day EMA’ and the ’20-week EMA’ are placed at
18617/ 5654 and 17919/ 5434 levels, respectively.
The monthly ‘RSI’ oscillator is moving higher from the 50
mark and the positive in ADX (9) indicator is intact.
The negative crossover in weekly ‘Stochastic’ oscillator is
still intact.
At present, the value of Daily ‘RSI’ oscillator is 56.38.
The RSI trading above the 50 mark shows strength of the
Source: Falcon:
current up trend.
The 38.2% and 50% Fibonacci Retracement levels of the
Actionable points:
rise from 17250 to 19138 / 5216 to 5815 are placed at
18416 / 5586 and 18194 / 5515, respectively.
View for the day
Neutral
Trading strategy:
Resistance Levels
5729 - 5757
Support Levels
5633
The derivative contract for the October series proved to be a
phase of consolidation for the markets. The October series
showed just a 1 % gain in comparison to the 6% up move in
September. Overall, the markets are still stuck in trading
range of 18886 to 18535 / 5729 to 5633 and there is no
significant change on the daily chart. Hence, we reiterate our
view that only a sustainable breakout / breakdown on either
side of the range would give clarity of the near term trend. A
move beyond 5729 would push indices towards their next
resistance and we may then expect our indices to move
towards 18973 - 19138 / 5757 - 5816. A breach of 18535
/ 5633 level would reinforce the selling momentum and in
this case we may witness a correction towards 18416 -
18194 / 5586 - 5515 levels.
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Daily Technical Report
October 26, 2012
Exhibit 2: Bank Nifty Daily Chart
Bank Nifty Outlook - (11615)
Yesterday, yet again Bank Nifty opened on a flat note and
traded in a narrow range throughout the day to close with
a minimal gain of 0.31%. The index continued its sideways
trading activity in the mentioned range of 11745 - 11245.
In line with our benchmark indices there is no major
change in the chart structure of Bank Nifty. Thus, we
reiterate our view that any fresh positions in the index
should be created only if the index sustains outside the
said range. In the mentioned range 11690 - 11732 levels
are likely to act as resistance and 11534 - 11511 levels
are likely to act as support in coming trading session.
Actionable points:
View for the day
Neutral
Resistance Levels
11690 - 11732
Support Levels
11534 - 11511
Source: Falcon:
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Daily Technical Report
October 26, 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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