Daily Technical Report
January 31, 2013
Sensex (20005) / NIFTY (6056)
Exhibit 1: Nifty Daily Chart
Yesterday, once again indices opened on a muted note in-
line with mixed Asian bourses. Subsequently, indices
remained in a tight trading range of less than half a percent
for the entire trading session to close with very nominal
gains. During the session, the Realty, Consumer Durables
and Oil & Gas counters showed positive momentum;
whereas the Capital Goods, Power and Auto sectors
remained under pressure throughout the session. The
advance to decline ratio was strongly in favor of declining
Formation
The ’20-day EMA’ and the ’20-week EMA’ are placed at
19877 / 6020 and 19149 / 5809 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:
We are observing a ‘Hanging Man’ Japanese
Actionable points:
Candlestick pattern on the weekly chart.
View
Bearish below 6041
Expected Targets
6007 - 5940
Trading strategy:
Resistance Levels
6112 - 6125
Surprisingly, just a day before the derivative expiry, we
witnessed a very narrow trading session. Since there is no
major change in the chart structure, we reiterate that
Tuesday’s high of 20204 / 6112 would act as resistance in
coming trading sessions. On the flipside, we continue to
mention that only a close below 19884 / 6007 would
indicate a further fall and indices may slide towards the
19596 - 19406 / 5940 - 5897 levels.
The coming trading is expected to trade with substantial
volatility on account of January month derivative expiry.
Thus, we advise traders to trade with strict stop losses on
their existing positions and avoid taking undue risks.
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Daily Technical Report
January 31, 2013
Bank Nifty Outlook - (12768)
Exhibit 2: Bank Nifty Daily Chart
Yesterday, In line with our benchmark indices Bank Nifty too
opened on a flat note and traded in a narrow range
throughout the session. We are now witnessing a narrow
range body formation indicating indecisiveness prevailing at
current levels. As there is no major change in the chart
structure we reiterate our view that the index is likely to
consolidate in the range of 12500 - 13000 over the next few
sessions. Only a decisive break outside the said range will
dictate a clear direction of the trend. In the mentioned range
12680 - 12606 are likely to act as support and 12832 -
12862 levels are likely to act as resistance for the day.
Actionable points:
View
Neutral
Resistance levels
12832 - 12862
Support Levels
12680 - 12606
Source: Falcon:
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Daily Technical Report
January 31, 2013
Research Team Tel: 022 - 30940000
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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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