Daily Technical Report
September 05, 2014
Sensex (27086) / Nifty (8096)
Exhibit 1: Nifty Daily Chart
Yesterday, our benchmark index opened on a flat note
amid mixed global cues. During the first half, the index
remained slightly under pressure and corrected nearly half
a percent from the day’s high. However, a modest recovery
towards the fag end trimmed major portion of its losses.
The Realty sector was the major culprit during yesterday’s
session along with the Metal and Capital Goods sectors;
whereas the Health Care and FMCG sectors managed to
close inside the positive territory. The advance to decline
ratio was strongly in favor of the declining counters.
Formations
The ’89-day EMA’ and the ’89-week EMA’ are placed at
24931 / 7457 and 21704 / 6494 levels, respectively.
The ’20-day EMA’ and the ‘20-week EMA’ are placed at
26123 / 7821 and 24881 / 7433 levels, respectively.
Source: Falcon
Actionable points:
Trading strategy:
We had a quiet start for yesterday’s session; but
View
Neutral
immediately index started correcting and lost more than 50
Support Levels
8060 - 8022
points in first couple of hours. However, the intraday
Resistance Levels
8115 - 8150
correction got arrested around the hourly ’20 EMA’ and
eventually, index managed to recover major part of its
losses. Yet another session ended with ‘Narrow Range
Body’ formation, indicating uncertainty or exhaustion after
the ongoing trend. These patterns have more significance
because they have formed precisely at the higher end of the
‘Upward Sloping Channel’ (please refer the exhibit) seen on
the daily chart. However, looking at the chart structure of
individual stocks, we are not expecting an immediate trend
reversal in the near term. We expect the index to
consolidate a bit for some time. At present, the trading
range could be 8150 - 8060. In case, if the index manages
to sustain below 8060 mark, then there is a possibility of
some intraday weakness to test 8022 level. Meanwhile, we
continue to expect a stock specific movement in the market.
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Daily Technical Report
September 05, 2014
Bank Nifty Outlook - (16034)
Exhibit 2: Bank Nifty Daily Chart
Yesterday, the banking index had an identical price
movement to the Nifty. During the first half, the Bank Nifty
remained under pressure and eventually managed to give
a decent recovery to restrict their losses to merely half a
percent. However, the overall chart structure remains
unchanged. Hence going forward, 16210 - 15926 would
be seen as a trading range for the banking index. The
traders can trade with a positive bias (with an intraday
perspective) as long as Bank Nifty remains above 15926.
Actionable points:
View
Neutral
Resistance Level
16220
Support Level
15926
Source: Falcon
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Daily Technical Report
September 05, 2014
Research Team Tel: 022 - 30940000
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Technical Analyst
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