Daily Technical Report
May 05, 2014
Sensex (22404) / Nifty (6695)
Exhibit 1: Nifty Daily Chart
The concluding session of the week started on a flat note in-
line with mixed global cues. The overall movement of the index
was relatively narrower than the previous session, which led to
a flat close. On the sectoral front, the Metal, Capital Goods
counters remained under tremendous selling pressure;
whereas the IT, and TECK sectors managed to close in the
green. The advance to decline ratio was in favor of the
advancing
counters.
(A=1422
D=1307)(Source-
Formation
The ’89-day EMA’ and the ’89-week EMA’ are placed at
21593 / 6440 and 20014 / 5992 levels, respectively.
The ’20-day EMA’ and the ‘20-week EMA’ are placed at
22454 / 6715 and 21645 / 6458 levels, respectively.
The weekly ‘RSI’ momentum oscillator is signaling a
negative crossover.
Source: Falcon
Trading strategy:
Actionable points:
We witnessed a tug of war among the bulls and bears
View
Bearish
throughout the week. But in the end, it was the bears who
Expected Targets
6600 - 6550
dominated the week and managed to restrict the bulls. In
Resistance Levels
6720 - 6780
the process, the Nifty slid gradually and corrected slightly
below the 6700 mark. In our previous report, we had
clearly mentioned about the Nifty facing strong resistance
around 6850 - 6860 levels; going forward, considering the
negative placement of momentum oscillators, the index is
now likely to correct towards 6665 levels. The ‘Shooting
Star’ formed during the previous week has now been
confirmed. This is supported by the negative crossover of
the weekly ‘RSI’ momentum oscillator. Combining these
negative evidences, we expect the Nifty to continue its
downward movement, i.e. towards 6600 - 6550 levels in
the coming week. On the flipside, 6780 is likely to act as an
immediate resistance level. Only a sustainable move
beyond this level may push the Nifty to retest 6850 - 6860
levels, which seems very unlikely at this juncture. We advise
traders to remain light on positions and avoid taking undue
risks.
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Daily Technical Report
May 05, 2014
Bank Nifty Outlook - (12842)
Exhibit 2: Bank Nifty Daily Chart
On Friday, bank nifty too opened on a flat note and
similar to our Benchmark index closed on a flat note. At
this juncture, the banking index is moving in an ‘Upward
Sloping Channel’ (Please refer the exhibit). We reiterate
our view that the Bank Nifty is likely to test lower level of
12738. In extreme bearish scenario, if the index manages
to sustain below Wednesday low of 12738 then we may
witness further correction towards 12600 - 12500 levels.
On the flipside, immediate resistance is at 13100 levels.
Any closing above this level would restrict ongoing fall
and would open up possibilities of the rally towards
13125 - 13260 levels.
Actionable points:
View
Bearish
Expected Targets
12738 - 12600
Source: Falcon
Resistance Level
13125
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Daily Technical Report
May 05, 2014
Research Team Tel: 022 - 30940000
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Sameet Chavan
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Technical Analyst
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