Daily Technical Report
May 31, 2013
Exhibit 1: Nifty Daily Chart
Sensex (20215) / NIFTY (6124)
Yesterday, we witnessed a gap down opening as suggested
by the SGX Nifty early in the morning. However, indices
found support at day’s low and bounced back immediately
right from the initial trade. Range bound activity was seen
during the session as indices eventually managed to close
marginally in the positive territory. For the day Auto and
FMCG stocks were among the major gainers whereas Realty,
Metal and Oil & Gas sectors ended in the red. The advance
to decline ratio was in favor of declining counters. (A=1062
D=1327)
Formation
The ’20-week EMA’ and the ’20-day EMA’ are placed at
19416/ 5888 and 19916/ 6047 levels, respectively.
The ’89-day EMA’ and the ‘200-day SMA’ are placed at
19435/ 5893 and 18997 / 5773, respectively.
Source: Falcon:
The weekly ‘RSI’ momentum oscillator and the daily ADX
(9) indicator are negatively poised.
We are observing a ‘Bearish Engulfing’ Japanese
candlestick pattern on weekly chart.
Actionable points:
Trading strategy:
Similar to Wednesday’s session, yesterday too we witnessed
View
Neutral
range bound and lackluster price movement. During the last
Resistance levels
6128 - 6166
hour of the session, volatility increased as indices marginally
Support Levels
6055 - 6012
sneaked above Tuesday’s high of 20210 / 6128 but closed
slightly below it. As there is no major change in the price
structure, we continue to mention that indices may show
weakness if they trade below Tuesday’s low of 19963 /
6055. In this scenario, indices may test 19819 / 6012 level.
However, on the other hand, we are observing strong
resistance zone around 20256 - 20308 / 6146 - 6166
levels.
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Daily Technical Report
May 31, 2013
Exhibit 2: Bank Nifty Daily Chart
Bank Nifty Outlook - (12806)
Yesterday, Bank Nifty opened on a pessimistic note and
thereafter we witnessed lackluster activity throughout the
session resulting in a narrow range body formation.
However, selling pressure was seen in specific large cap
banking counters. At this juncture the index has managed
to give a close marginally above the ’20 - day EMA’.
Thus going forward a sustainable move below yesterday’s
low of 12721 would intensify selling pressure and the
index may drift lower towards 12620 - 12582 levels. On
the upside 12901 - 13014 levels are likely to act as
resistance for the day.
Actionable points:
View
Bearish below 12721
Expected Targets
12620 - 12582
Resistance Levels
12901 - 13014
Source: Falcon:
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Daily Technical Report
May 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
Ankur Lakhotia
-
Technical Analyst
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