Daily Technical Report
July 05 , 2013
Exhibit 1: Nifty Daily Chart
Sensex (19411) / NIFTY (5837)
Yesterday our benchmark indices opened marginally higher
in line with global markets. We witnessed significant volatility
throughout the second half of the trading session as the
markets hit day’s low and then the day’s high within just over
an hour. FMCG, IT and Pharmaceutical counters rallied in
yesterday’s session while the metal counters remained under
pressure. The advance to decline ratio was marginally in the
favor of advancing counters. (A=1194 D=1088) (Source-
Formation
The ’89-day EMA’ and the ’89-Week EMA’ are placed at
19325 / 5849 and 18498/ 5597 levels, respectively.
The ’20-Day EMA’ and the ‘20-Week EMA’ are placed
at 19216/ 5798 and 19322 / 5848, respectively.
Source: Falcon:
The 50% and 61.8% Fibonacci retracement levels of the
fall from 20444 / 6229 to 18467/ 5566 are placed at
19455/ 5898 and 19689 / 5976, respectively.
Actionable points:
The weekly chart now depicts a ‘Bullish Engulfing’ but
View
Neutral
the monthly chart shows a 'Bearish Engulfing" Japanese
candlestick pattern.
Resistance Level
5850 - 5898
Support Levels
5786 - 5760
Trading strategy:
Yesterday markets opened higher and significant volatility
was seen during the session. The indices have now tested the
89 day EMA and the Nifty has closed just below that moving
average. The gap area formed on 3rd July in the range of
18926 to 19093 / 5699 to 5749 has now nearly been filled.
Going forward, we are of the opinion that if indices sustain
above yesterday’s high of 19445 / 5749, then they are likely
to move towards the next resistance level of 19598 / 5898.
On the flip side, both the hourly chart and the daily chart
indicate an overbought level on the stochastic oscillator. As a
result any gap up opening in today’s session may lead to
profit booking at higher levels. Traders are advised adopt a
stock specific approach and stay light on positions in the
Index futures, considering the significant volatility in
yesterday’s session. A fall below yesterday’s low of 19245 /
5786 will confirm the beginning of a lower top lower bottom
trend on the hourly chart and may lead to strong selling
pressure.
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Daily Technical Report
July 05, 2013
Exhibit 2: Bank Nifty Daily Chart
Bank Nifty Outlook - (11381)
Yesterday, while the benchmark indices closed with
substantial gains the Bank Nifty the Bank Nifty remained
muted for the session. There is no significant change in the
chart structure of this index and thus we reiterate our view that
below the support level of
11300 would augment the
pessimism in the index. As a result, it may test lower levels of
11277 / 11164. On the positive front, the positive crossover
seen in daily ‘RSI-Smoothened’ oscillator is still intact. Hence,
any sustainable move beyond the high of 11506 would
attract buying interest among market participants. In this
case, it may move higher to test 11590.
Actionable points:
View
Neutral
Support Levels
11300 - 11277
Resistance Levels
11506 - 11590
Source: Falcon:
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Daily Technical Report
July 05, 2013
Research Team Tel: 022 - 30940000
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Research Team
Shardul Kulkarni
-
Head - Technicals
Sameet Chavan
-
Technical Analyst
Sacchitanand Uttekar
-
Technical Analyst
Angel Broking Pvt. Ltd.
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