Daily Technical Report
March 04, 2014
Sensex (20947) / Nifty (6221)
Exhibit 1: Nifty Daily Chart
The opening session of the week started slightly on the
pessimistic note in line with the negative sentiments across the
globe. After a sharp recovery in the initial hour, the skeptical
bulls chose to book their profits. But, the bears took the charge
and pulled the Nifty significantly lower from early morning high
to eventually end the session almost at the lowest point of the
day. On the sectoral front, Consumer durables and Oil & Gas
sectors outperformed the benchmark indices; whereas
Healthcare, IT and Auto counters were under pressure. The
advance to decline ratio was in favor of the declining counters.
Formation
The ’89-day EMA’ and the ’89-week EMA’ are placed at
20613 / 6128 and 19535 / 5850 levels, respectively.
The ’20-day EMA’ and the ‘20-week EMA’ are placed at
20718 / 6156 and 20644 / 6138 levels, respectively.
The 78.6% Fibonacci retracement level of the fall from
Source: Falcon
6355.60 (high on January 23, 2014) to 5933.30 (low on
February 04, 2014) is placed at 6265.
Actionable points:
Trading strategy:
View
Neutral
Support Levels
6176 - 6160
Our market opened tad lower on the back of global
Resistance Levels
6283 - 6300
uncertainty. Initially, index managed to neglect it; but post
mid session bears came back strongly and displayed their
dominance till the closing point of the day. In the process,
the Nifty shed nearly one percent as compared to the
previous close. As mentioned in our previous report, the
strong resistance zone of
6280
-
6300 showed its
importance as the selling triggered after posting a high of
6278. The Nifty has now closed below Friday's low of 6228,
which is a first sign of weakness. Considering negative
placement of daily ' Stochastic' oscillator and hourly '5 & 20
EMA', we expect the index to test 6176 - 6160 levels. On
the flipside, 6280 - 6300 remains to be a strong resistance
zone for the index.
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Daily Technical Report
March 04, 2014
Bank Nifty Outlook - (10652)
Exhibit 2: Bank Nifty Daily Chart
On Monday, the Bank Nifty opened half a percent lower
and instantly recovered one and half a percent from the
early morning lows. However, post midsession; we
observed a strong selling pressure in some of the
heavyweight constituents around daily
‘89EMA’. This
resulted in a confirmation of the ‘Hanging Man’ Japanese
candlestick pattern mentioned in our previous report.
Going forward, looking at the intraday pessimism and the
placement of Daily momentum oscillators, we expect the
banking index to remain under pressure. In this scenario,
the Bank Nifty may continue its slide towards the next
support zone of 10550 - 10471. On the flipside, 10803
- 10850 levels remain to be strong supply zone for the
index.
Actionable points:
View
Bearish Below 10600
Expected Target
10550 - 10471
Source: Falcon
Resistance levels
10803 - 10850
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Daily Technical Report
March 04, 2014
Research Team Tel: 022 - 30940000
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-
Technical Analyst
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