Daily Technical Report
August 02, 2013
Exhibit 1: Nifty Daily Chart
Sensex (19317) / NIFTY (5728)
Yesterday, our benchmark indices opened higher on the
back of positive global cues but faced significant selling
pressure in the first half. However, during the second half
some recovery was seen in select banking heavyweights and
as a result the markets trimmed their losses, to close
marginally in the red. Once again the Realty, PSUs, Oil &
Gas, Metal Counters showed tremendous weakness during
the session. The Advance to Decline ratio was strongly in
favor of declining counters. (A=761 D=1461) (Source-
Formation
The ’89-day EMA’ and the ’89-week EMA’ are placed at
19479/ 5871 and 18610 / 5625 levels, respectively.
The ’20-day EMA’ and the ‘20-week EMA’ are placed at
19648 / 5875 and 19473 / 5867 respectively.
The hourly ‘RSI-Smoothened’ oscillator’ is signaling a
positive crossover.
On the daily chart, we are observing a ‘Bullish Hammer’
Source: Falcon:
Japanese candlestick pattern.
Actionable points:
Trading strategy:
View
Bullish above 5752
Yesterday's price action can be perfectly described as the
Expected targets
5780 - 5822
'Roller Coaster Ride' as the Nifty moved nearly a percent on
Support Level
5675
both sides. In our previous report, we had mentioned about
the formation of a 'Bullish Hammer' candlestick pattern.
While the momentum oscillators on the daily chart continue
to indicate a strong possibility of a bounce, this candlestick
pattern is still not confirmed and only closing above the
19388 / 5752 mark would signal bullish implications. Post
this confirmation the indices may test the 5822 - 5850
levels. Also, we reiterate our view that Wednesday's low of
5675 is a critical and strong support or the Nifty. Any fall
and close below this level would negate the ‘Bullish
Hammer” pattern and indices may then head towards the
5630 mark.
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Daily Technical Report
August 02, 2013
Bank Nifty Outlook - (10143)
Exhibit 2: Bank Nifty Weekly Chart
Yesterday, the Banking counters showed significant resilience
and closed in the green despite the benchmark indices
closing on a weak note. The 61.8% Fibonacci retracement
level (9924) mentioned in the previous reports is proving to
be a decent support for this index and the candlestick pattern
formed in yesterday’s trading session, is quite encouraging.
Going forward, considering the placement of the momentum
oscillators on the daily chart and the chart structure of
individual banking heavyweights, we see the possibility that
the Bank Nifty may continue to move higher if it can cross the
10225 level. A sustainable move beyond this level may lead
the index to test the 10450 - 10590 levels. On the lower side,
a close below the 9863 level would negate all the bullish
prospects in the near term.
Actionable points:
Source: Falcon:
View
Bullish above 10225
Expected Targets
10450 - 10590
Support Levels
9924 - 9863
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Daily Technical Report
August 02, 2013
Research Team Tel: 022 - 30940000
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Research Team
Shardul Kulkarni
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Head - Technicals
Sameet Chavan
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Technical Analyst
Sacchitanand Uttekar
-
Technical Analyst
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