Daily Technical Report
April 01, 2014
Sensex (22386) / Nifty (6704)
Exhibit 1: Nifty Daily Chart
The opening session of the week opened slightly higher as
indicated by the SGX Nifty. Subsequently, index witnessed a
decent correction from day’s high; but managed to recover
after posting a low of 6662 to end the session with very
nominal gains. On the sectoral front, the Realty, Metal,
Consumer Durables and Auto sectors witnessed a strong rally;
whereas the Capital Goods, Power and FMCG counters
remained under some selling pressure. The advance to decline
ratio was strongly in favor of the advancing counters. (A=1706
Formation
The ’89-day EMA’ and the ’89-week EMA’ are placed at
21046 / 6265 and 19714 / 5903 levels, respectively.
The ’20-day EMA’ and the ‘20-week EMA’ are placed at
21761 / 6493 and 21061 / 6272 levels, respectively.
Source: Falcon
Actionable points:
Trading strategy:
Our benchmark index continued its upward momentum by
View
Neutral
opening half a percent higher on the back of positive global
Resistance Levels
6750 - 6800
cues. However, we observed a decent profit booking in some
Support Levels
6662 - 6580
of the index heavyweights, which led the index to slip well
inside the negative territory. However, the hourly ’20 EMA’
provided a strong support post the midsession and as a result,
we could see a sharp recovery from day’s low to post a closing
marginally above the 6700 mark for the first time ever. The
daily chart now exhibits a ‘Hanging Man’ Japanese candlestick
pattern. An occurrence of such pattern at market top does not
bode well for the bulls. But, considering monthly breakout from
the ‘Ascending Triangle’, we can only expect a near term
correction towards 6580 - 6540 levels if the Nifty manages to
close below yesterday’s low of 6662. On the higher side, 6750
- 6800 are seen as an immediate resistance zone for the
market. We reiterate that traders should adopt a stock centric
approach and avoid taking undue risk.
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Daily Technical Report
April 01, 2014
Bank Nifty Outlook - (12742)
Exhibit 2: Bank Nifty Daily Chart
Yesterday, the Bank Nifty too opened higher in-line with
the benchmark index. The index moved further to test the
127% Fibonacci retracement level of the fall from 12226
(high on December 09, 2013) to 9944 (low on February
04, 2014). However, this level acted as a stiff resistance
and as a result, the Bank Nifty witnessed a modest
correction to close with negligible losses. Going forward,
a sustainable move below yesterday’s low of 12660 may
lead to further correction towards 12570 - 12470 levels.
On the flipside, 12869 would now act as an immediate
resistance level for the banking index.
Actionable points:
View
Neutral
Support Levels
12570 - 12470
Resistance Level
12869
Source: Falcon
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Daily Technical Report
April 01, 2014
Research Team Tel: 022 - 30940000
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Sameet Chavan
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Technical Analyst
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