Daily Technical Report
May 02, 2014
Sensex (22418) / Nifty (6696)
Exhibit 1: Nifty Daily Chart
Yesterday, our markets opened marginally higher despite
cautious sentiments seen across the globe. Right from the initial
trade, we witnessed a strong buying interest in the market,
which resulted in a rally of nearly a percent. But, post the initial
hour, the bears came back strongly and pulled the index
substantially lower from early morning high. However, a
modest recovery towards the end trimmed major portion of
losses. On the sectoral front, the Realty, Capital Goods and
Consumer Durables counters remained under tremendous
selling pressure; whereas the Auto, FMCG and Oil & Gas
sectors somehow managed to close in the green. The advance
to decline ratio was strongly in favor of the declining counters.
Formation
The ’89-day EMA’ and the ’89-week EMA’ are placed at
21534 / 6422 and 20200 / 5994 levels, respectively.
The ’20-day EMA’ and the ‘20-week EMA’ are placed at
22464 / 6719 and 21666 / 6465 levels, respectively.
The daily momentum oscillators are negatively poised.
Source: Falcon
Actionable points:
Trading strategy:
It was a complete roller coaster ride for the market
View
Bearish
participants as the market displayed completely wild
Expected Targets
6600 - 6550
movement on both sides during yesterday’s session. Quite
Resistance Levels
6720 - 6780
surprisingly, the opening hour dominated by the bulls; but
faced a strong resistance near 6780 mark. A massive
selling pressure near day’s high pulled the index lower by
more than 100 points in merely three hours. Although, we
did see a minor recovery towards the fag end; we continue
to mention that the bias remains negative for next few
trading sessions. Our benchmark index (Nifty) has now
closed below the daily ’20 EMA’ after four straight sessions’
fall. Considering the ‘Lower Top Lower Bottom’ formation of
hourly chart, we expect the Nifty to test 6600 - 6550 levels.
On the flipside, 6720 - 6780 would act as immediate
resistance levels for the index.
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Daily Technical Report
May 02, 2014
Bank Nifty Outlook - (12856)
Exhibit 2: Bank Nifty Daily Chart
Yesterday, the Bank Nifty movement was the replica of
our benchmark index. Immediately post the midsession,
banking conglomerates started correcting sharply, which
resulted in more than two percent fall in Bank Nifty from
the early morning high. Despite recovering from the day’s
low, the banking index failed to close above the hourly
’89-EMA’ level of 12870. Going forward, looking at the
negative placement of daily momentum oscillators and
the hourly chart structure, we expect the Bank Nifty to test
12700 - 12600 in coming couple of trading sessions. On
the flipside,
12950
-
13020 levels would act as
immediate resistances for the banking index.
Actionable points:
View
Bearish
Expected Targets
12700 - 12600
Resistance Levels
12950 - 13020
Source: Falcon
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Daily Technical Report
May 02, 2014
Research Team Tel: 022 - 30940000
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Technical Analyst
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