Daily Technical Report
September 04, 2013
Exhibit 1: Nifty Hourly Chart
Sensex (18235) / NIFTY (5341)
Yesterday, our benchmark indices opened on a flat note as
indicated by the SGX Nifty. However, the index failed to sustain
at higher levels on the back of enormous selling pressure in
some of the heavyweights. Rumors of missile attacks in Syria
added to the woes of the bulls and the market crashed nearly 4
%. All sectors ended in the negative territory with the Banking,
Realty, Consumer Durables, FMCG and Oil & Gas counters
leading the decline. The advance to decline ratio was strongly
in favor of declining counters. (A=766 D=1509) (Source-
Formation
The ’89-day EMA’ and the ’89-week EMA’ are placed at
19137 / 5725 and 18601 / 5607 levels, respectively.
The ’20-day EMA’ and the ‘20-week EMA’ are placed at
18628/ 5501 and 19093 / 5705 levels, respectively.
The monthly ‘RSI-Smoothened’ oscillator is still negatively
Source: Falcon:
poised; whereas the weekly ‘Stochastic’ momentum
oscillator has given a positive crossover.
Actionable points:
The weekly chart depicts yet another ‘Bullish Hammer’
Japanese candlestick pattern.
View
Neutral
The ‘Lower Top - Lower Bottom’ formation in weekly chart
Resistance Levels
5420 - 5450
is still intact.
Support levels
5290 - 5250
Trading strategy:
This was the third session in last 15 trading sessions where the
Nifty posted a mammoth intraday fall of nearly four percent on
closing basis. At this juncture, the Nifty is hovering around the
strong support of 61.8% Fibonacci retracement level of rise
from 5118 to 5581. This level is placed at 5295 and also
coincides with trend line support of 'Channel' (please refer the
exhibit). Hence, this level can be considered as a strong
support for our market. Only a sustainable move below 5290
would augment the bear’s dominance in the market. In this
scenario, we may expect a fall towards 5250 - 5200 levels. On
the flipside, 5420 - 5450 levels would act as immediate
resistance in coming trading session.
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Daily Technical Report
September 04, 2013
Bank Nifty Outlook - (8664)
Exhibit 2: Bank Nifty Hourly Chart
Yesterday, the Bank nifty opened with minor gains, but the
bulls once again failed to mark their existence at higher
levels. The hourly' 89 EMA' and “upper trend line” of the
Channel pattern proved to be major obstacles for the index.
As a result, the index declined towards the 78.6% Fibonacci
retracement level of the rise from 8366 to 9234. This level is
seen around 8552 and may provide some support in the near
term. A fall below 8552 may result in the Bank Nifty sliding
further towards the 8366 mark. On the flipside 8712 - 8878
levels would act as strong resistance in coming trading
session.
Actionable points:
View
Neutral
Support levels
8552 -
8366
Resistance Levels
8712 -
8807
Source: Falcon:
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Daily Technical Report
September 04, 2013
Research Team Tel: 022 - 30940000
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Shardul Kulkarni
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Head - Technicals
Sameet Chavan
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Technical Analyst
Sacchitanand Uttekar
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Technical Analyst
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