Daily Technical Report
June 02, 2014
Sensex (24217) / Nifty (7230)
Exhibit 1: Nifty Daily Chart
On Friday, our benchmark index opened on a positive note
considering mixed global cues. Subsequently, index
remained slightly under pressure for most part of the
remaining session and finally managed to close with
nominal losses. On the sectoral front, the Banking and
Consumer durable counters were among the major losers;
whereas the Health care and FMCG sector outperformed
our benchmark index. The advance to decline ratio was
marginally in favor of the advancing counters. (A=1545
Formation
The ’89-day EMA’ and the ’89-week EMA’ are placed at
22428 / 6690 and 20359 / 6094 levels, respectively.
The ’20-day EMA’ and the ‘20-week EMA’ are placed at
23918 / 7137 and 22441 / 6696 levels, respectively.
Trading strategy:
Source: Falcon
After three positive trading weeks and a vertical rally,
traders chose to take some money off the table. The Nifty
Actionable points:
maintained its trading range of 7564 to 7067 mentioned in
our previous report by correcting immediately after
View
Neutral
surpassing the 7500 mark early in the week. It’s been a
Support Levels
7190 - 7130
gradual slide over the entire week and eventually the Nifty
Resistance Levels
7273- 7300
managed to take a halt around the hourly ‘89 EMA’ level of
7220. Looking at the daily chart structure and the negative
placement of ‘RSI-Smoothened’ oscillator, we expect this
important support level to get broken in the coming sessions
and the correction may get extended towards 7130 - 7080
levels. These levels coincide with the daily ’20 EMA’ and
hence, can be considered as a strong support zone. In fact,
we feel that this corrective phase is very essential for the
market from a longer term perspective. We advise traders
to start accumulating stocks with a value buying proposition
around this support zone. On the other hand, 7345 - 7373
are seen as strong resistance levels for the market.
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Daily Technical Report
June 02, 2014
Bank Nifty Outlook - (14793)
Exhibit 2: Bank Nifty Daily Chart
On Friday, the banking index too opened on a positive
note in line with our benchmark index. However, we
Source: Falcon
witnessed strong selling pressure right from the opening
trade. The selling pressure intensified as the day
progressed and in the process, the Bank Nifty
underperformed our benchmark index by far. Looking at
the hourly chart, it is clearly seen that the banking index
has closed tad below the ‘89EMA’ level of 14818; which
is a sign of further weakness. In addition, the daily ‘RSI
Smoothened’ momentum oscillator has now given a
negative crossover from the extreme overbought zone.
Hence, we expect Bank Nifty to continue ongoing
correction towards 14600 - 14460 levels. On the flipside,
14910 - 15110 levels would now act as immediate
resistance levels.
Actionable points:
View
Bearish
Support Levels
14600 - 14460
Resistance Level
14910 - 15110
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Daily Technical Report
June 02, 2014
Research Team Tel: 022 - 30940000
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Sameet Chavan
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Technical Analyst
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