Daily Technical Report
February 06, 2014
Sensex (20261) / Nifty (6022)
Exhibit 1: Nifty Hourly Chart
Yesterday, we witnessed a flat opening considering quiet
trading mood across the globe. Once again, our benchmark
index faced tremendous selling pressure during the initial hour;
but the Nifty found decent buying interest near day’s low,
which pushed the index higher to close at the highest point of
the day. On the sectoral front, the FMCG and Oil & Gas
counters closed in the red; whereas the Metal and Realty
counters were among the major gainers. The advance to
decline ratio was strongly in favor of the advancing counters.
Formation
The ’89-day EMA’ and the ’89-week EMA’ are placed at
20607 / 6127 and 19414 / 5817 levels, respectively.
The ’20-day EMA’ and the ‘20-week EMA’ are placed at
20724 / 6154 and 20551 / 6111 levels, respectively.
The ‘Shooting Star’ pattern on the weekly chart has now
been confirmed.
Source: Falcon
The Weekly ‘RSI-Smoothened’ and the ‘ADX (9)’ indicator
are now signaling a negative crossover
Actionable points:
View
Neutral
Trading strategy:
Support Levels
5970 - 5933
A volatile session on Tuesday was followed by a muted
Resistance Levels
6075 - 6100
opening in our market. The bears then completely dominated
the initial hour and in the process, our benchmark index
trimmed nearly half a percent. However, the bulls successfully
managed to defend the market around the 61.8% Fibonacci
retracement level of Tuesday's entire range. In the process, we
witnessed a gradual recovery to close almost at the highest
point of the day. The Nifty has now traversed an hourly '20
EMA' level of 6013. This price action confirmed a 'Higher Top
Higher Bottom' formation on the hourly chart, which is a sign
of strength and hence, increases the possibility of an expected
bounce towards 6075 - 6100 levels. On the flip-side, 5970 -
5930 levels remains to be a key support zone for our
benchmark index.
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Daily Technical Report
February 06, 2014
Bank Nifty Outlook - (10232)
Exhibit 2: Bank Nifty Hourly Chart
Yesterday, the Bank Nifty too opened quietly in-line with
our benchmark index and immediately shed nearly a
percent in the initial trades. As mentioned in our previous
report, the Bank Nifty found a decent support slightly
above the 10100 mark. The buying interest picked up as
the day progressed, which led the banking index to close
marginally below the hourly swing high of
10267.
Looking at the hourly chart, it is clearly seen that the Bank
Nifty has formed a 'Bullish Inverse Head & Shoulder'
pattern. The said pattern would be confirmed once the
index sustains above 10267 level. In this scenario, we
may expect the index to rally towards the theoretical
target of the pattern i.e. 10400 - 10450 levels. On the
flip-side, 10100 - 9944 levels would act as key supports
in coming trading session.
Actionable points:
View
Neutral
Support Levels
10100 - 9944
Source: Falcon
Resistance levels
10400 - 10450
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Daily Technical Report
February 06, 2014
Research Team Tel: 022 - 30940000
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