Daily Technical Report
January 06, 2015
Sensex (27842) / Nifty (8378)
Exhibit 1: Nifty Daily Chart
The opening session of the week began on a subdued note
amid quiet global cues. During the first half, the Nifty
managed to trade with a positive territory; but, post the
midsession, we witnessed a modest profit booking in the
market and as a result, the index closed with nominal
losses. The Auto, Capital Goods and Consumer Durables
sectors managed to trade with a positive bias; whereas the
IT, Metal, Banking and Healthcare counters remained
slightly under pressure. The advance to decline ratio was
marginally in favor of the advancing counters. (A=1545
Formations
The ’89-day EMA’ and the ’89-week EMA’ are placed
at 27089 / 8121 and 23525 / 7066 levels, respectively.
The ’20-day EMA’ and the ‘20-week EMA’ are placed
at 27601 / 8285 and 27085 / 8126 levels, respectively.
Source: Falcon
Actionable points:
Trading strategy:
The Nifty finally snapped a 6-day rally as we witnessed a bit
View
Neutral
of profit booking
/ weakness in some of the index
Resistance Levels
8460 - 8480
heavyweight constituents. In our previous report, we had
Support Levels
8363 - 8320
mentioned about our skepticism on the recent up move and
also about the cautious stance on the market. As expected,
yesterday, the Nifty faced a strong resistance around 8460
- 8480, which is the 78.60% Fibonacci retracement levels
(of the recent fall). As a result, we witnessed a closing well
below the 8400 mark after posting a high of 8445.60. We
maintain our cautious stance on the market and expect the
index to find a strong resistance around above mentioned
levels. Going forward, a sustainable move below
yesterday’s low of 8363.90 may result into an immediate
intraday correction towards
8320
-
8290 levels.
Meanwhile, it’s advisable to stick to a stock specific
approach and trade with a proper exit strategy.
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Daily Technical Report
January 06, 2015
Bank Nifty Outlook - (19017)
Exhibit 2: Bank Nifty Daily Chart
Yesterday, unlike our benchmark index, the Nifty opened
slightly higher; but, faced a strong selling pressure at
higher levels. As a result, the Bank Nifty corrected gently
throughout the remaining session and eventually closed
with 0.21% cut. Although, the Bank Nifty broke out from
the ‘Horizontal Line’ resistance on Friday; we maintain
our cautious stance on the market. The main reason
behind this discomfort is the overall chart structure of our
benchmark index (Nifty), which is trading around the
strong resistance zone. Hence, we would advise traders to
focus more on Bank Nifty’s constituents and trade with
proper stop losses. On the downside, the support is now
seen at 18950 - 18850 levels.
Actionable points:
View
Neutral
Resistance Levels
19200 - 19300
Support Levels
18950 - 18850
Source: Falcon
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Daily Technical Report
January 06, 2015
Research Team Tel: 022 - 30940000
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-
Technical Analyst
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