Daily Technical Report
July 02, 2014
Sensex (25516) / Nifty (7635)
Exhibit 1: Nifty Daily Chart
Yesterday’s session too opened higher after witnessing a
strong up move on Monday. Subsequently, index traded
within a narrow range throughout the session and
eventually closed with modest gains. On the sectoral front,
the Auto, Metal and Capital Goods sectors had a cheerful
day; whereas the IT, Oil & Gas and Healthcare sectors
ended slightly in the negative territory. The advance to
decline ratio was strongly in favor of the advancing
Formations
The ’89-day EMA’ and the ’89-week EMA’ are placed at
23440/ 6998 and 20775/ 6217 levels, respectively.
The ’20-day EMA’ and the ‘20-week EMA’ are placed at
25046 / 7488 and 23349 / 6972 levels, respectively.
Source: Falcon
Trading strategy:
Actionable points:
Monday’s strong rally was followed by a positive start of the
View
Neutral
session; but index remained muted and traded with very
Support Levels
7580 - 7540
lethargic movement. We have been mentioning a
Resistance Levels
7662 - 7700
‘Downward Sloping Channel’ (please refer the exhibit) since
last few days; which has now been broken on the upside as
the index closed above 7620. But, we are a bit skeptical on
this development as the index closed marginally higher with
very small body candle. In general scenario, the momentum
after breaking this resistance should have been much
stronger, which we feel was missing during yesterday’s
session. Hence, we would avoid going aggressively long on
the market and in fact, would advise traders to adopt a
stock centric approach. In case, if the momentum picks up
in the coming session then the index may re-test 7662 -
7700 levels. On the flipside, 7580 - 7540 are seen as
immediate support level for the index. The daily ‘RSI’
momentum oscillator has again bounced back near its
breakdown point of 64.50 (current level is 63.63). Hence,
any weakness around 7600 - 7580 would again dragged
the index lower to test 7480 level.
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Daily Technical Report
July 02, 2014
Bank Nifty Outlook - (15321)
Exhibit 2: Bank Nifty Daily Chart
Yesterday, the banking index too opened slightly higher in
line with the benchmark index and then remained
subdued for the rest if the session. In the process, index
didn’t manage to surpass mentioned resistance level of
15350 on a closing basis. Since, the overall movement
was very small, we are not seeing any major change in
the chart structure. Hence, we maintain our view that only
a sustainable move beyond 15350 would push the index
towards 15500 - 15600 levels. On the flipside, if the
index manages to stay below 15200 mark then there is a
possibility of re-testing 15058 - 15000 levels.
Actionable points:
View
Neutral
Support Levels
15200 - 15058
Resistance Levels
15350 - 15500
Source: Falcon
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Daily Technical Report
July 02, 2014
Research Team Tel: 022 - 30940000
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