Technical Research | November 14, 2011
Daily Technical Report
Sensex (17193) / NIFTY (5169)
Exhibit 1: Nifty Daily Chart
We witnessed a gap-down opening on Friday’s session and
markets remained under pressure till the midpoint of the
day. However, indices manage to give a minor bounce
from the day’s low during the latter of the session to close
marginally above the support level of 17165 / 5160. On
the sectoral front, the Banking, Metal and Capital Goods
counters were among the major losers whereas oil & Gas
and auto sector ended on a gaining side. The advance
decline ratio was strongly in favor of declining counters
(A=937 D=1912). (Source -www.bseindia.com)
Formation
• The Daily “200 SMA” is placed at 18000 / 5400 level.
• The “20 EMA” on the Daily and Weekly chart is placed
at 17165 / 5165 and 17300 / 5200, respectively.
Source: Falcon
• We are observing a negative crossover in Daily “RSI -
Smoothened” oscillator and the “ADX (9)” indicator.
Actionable points:
• The Daily chart depicts the Japanese candlestick
patterns such as “Long Legged Doji” and “Spinning Top” in
View
Neutral
Resistance Levels
5199 - 5240
Sensex and Nifty, respectively.
Support Levels
5142 - 5085
Trading strategy:
Both patterns indicate uncertainty prevailing at current
On Friday, indices registered a Weekly low of 17096 /
levels and both patterns need further confirmatory
5142 and closed marginally above the lower level (17165 /
signals. These patterns will be confirmed ONLY if the
5165) of the trading range mentioned in our previous
indices cross and close above the 17279 / 5199 mark.
report. Therefore, going forward, this level may act as an
In such a scenario, indices may rally towards 17400 -
important support. On Wednesday, we observed a negative
17570 / 5240 - 5285 levels. On the upside, 17700 /
crossover in “RSI
- Smoothened” oscillator and this
5326 level remains to be a strong resistance. A
crossover is still intact. In addition, the Daily chart depicts a
sustainable move above this may push indices to test
18000 - 18100 / 5400 - 5450 levels.
negative crossover in “ADX (9)” indicator, which implies that
if indices sustain below Friday’s low of 17096 / 5142, then
Therefore, we reiterate our view that traders should stay
a further fall is expected. In this case, indices may test
light on positions and continue to adopt a stock-specific
crucial support levels of 16900 - 16669 / 5085 - 5011.
approach.
On the other hand, the Daily chart exhibits Japanese
candlestick patterns such as “Long Legged Doji” in Sensex
and “Spinning Top” in Nifty.
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Technical Research | November 14, 2011
Bank Nifty Outlook - (9293)
Exhibit 2: Bank Nifty Daily Chart
Friday’s sharp fall was an impact of a trend line breakdown
as mentioned in our previous report. Due to massive selling
pressure in banking counters, Bank Nifty closed substantially
lower and tested the mentioned support level of 9323. The
momentum oscillators on the Weekly chart coupled with the
negative crossover of “5 & 20 EMA” on daily chart suggests
possibility of a further downside if index sustains below 9270
level. In this case, Bank Nifty may test lower levels of 9150
- 8950. However, looking at the oversold condition in hourly
chart, the possibility of a pullback or consolidation cannot be
ruled out.
On the upside, 9510 - 9650 levels may now act as a
resistance in coming trading sessions.
Actionable points:
View
Neutral
Resistance Levels
9510 - 9650
Support Levels
9270 - 9166
Source: Falcon
Stock Recommendations:
Exhibit 3: Indraprastha Gas (NSE Cash) Daily chart
Stock - Indraprastha Gas (NSE Cash)
Action - Buy
Last close - ` 428.90
Buying Level - Buy above ` 432
Stop Loss - ` 423.50
Target
- ` 452
Justification - On the Daily chart, we are witnessing a
breakout from the downward sloping trend line with
significant rise in volumes. Also, the “ADX (9)” indicator and
“5 & 20 Day EMA” are positively poised. Hence, we advise
buying this stock ONLY above ` 432 for a target of ` 452
in coming 3 - 4 trading sessions.
Source: Falcon
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2
Technical Research | November 14, 2011
Positive Bias:
Stock Name
5 Day EMA
20 Day EMA
Expected Target
Remarks
IGL
422.6
417
452
View will change below 414
M&M
834
827
880
View will change below 805
Chambal Fert
92.3
92.7
102
View will change below 89.50
Negative Bias:
Stock Name
5 Day EMA
20 Day EMA
Expected Target
Remarks
Educomp
259.3
259.6
225
View will change above 263
Suzlon
35.9
36.8
33
View will change above 37.40
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Technical Research | November 14, 2011
Daily Pivot Levels for Nifty 50 Stocks
SCRIPS
S2
S1
PIVOT
R1
R2
SENSEX
17,007
17,100
17,190
17,282
17,372
NIFTY
5,114
5,141
5,170
5,198
5,226
BANKNIFTY
9,077
9,185
9,378
9,486
9,680
ACC
1,179
1,199
1,211
1,231
1,244
AMBUJACEM
157
160
162
165
167
AXISBANK
1,013
1,035
1,074
1,096
1,135
BAJAJ-AUTO
1,675
1,710
1,732
1,768
1,789
BHARTIARTL
385
390
394
400
404
BHEL
313
319
324
330
335
BPCL
536
548
556
568
576
CAIRN
305
310
314
319
323
CIPLA
282
284
287
289
292
DLF
221
224
228
231
235
DRREDDY
1,594
1,607
1,617
1,630
1,640
GAIL
408
412
416
419
423
HCLTECH
413
420
427
433
440
HDFC
654
660
670
677
686
HDFCBANK
453
458
468
474
484
HEROMOTOCO
2,085
2,129
2,159
2,203
2,233
HINDALCO
121
125
130
134
140
HINDUNILVR
384
390
394
400
404
ICICIBANK
791
806
832
846
872
IDFC
115
117
120
122
124
INFY
2,534
2,655
2,731
2,852
2,928
ITC
208
210
213
215
217
JINDALSTEL
535
546
554
565
573
JPASSOCIAT
72
74
77
78
81
KOTAKBANK
484
492
498
506
512
LT
1,294
1,312
1,341
1,359
1,387
M&M
790
816
832
857
873
MARUTI
1,008
1,034
1,063
1,089
1,118
NTPC
170
172
173
175
177
ONGC
260
263
267
270
275
PNB
939
947
956
963
972
POWERGRID
102
104
105
106
107
RANBAXY
448
458
469
479
490
RCOM
80
82
84
85
87
RELCAPITAL
346
353
359
365
371
RELIANCE
836
861
875
899
913
RELINFRA
436
445
458
467
481
RPOWER
99
100
101
103
104
SAIL
101
103
105
107
109
SBIN
1,731
1,765
1,815
1,848
1,898
SESAGOA
198
202
206
211
214
SIEMENS
815
822
828
836
842
STER
115
116
118
119
121
SUNPHARMA
484
494
500
510
516
SUZLON
34
34
35
36
36
TATAMOTORS
176
179
183
186
191
TATAPOWER
99
100
102
103
104
TATASTEEL
418
424
429
435
440
TCS
1,093
1,112
1,126
1,146
1,160
WIPRO
363
373
380
389
397
Technical Research Team
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Technical Report
RESEARCH TEAM
Shardul Kulkarni
Head - Technicals
Sameet Chavan
Technical Analyst
Sacchitanand Uttekar
Technical Analyst
Mehul Kothari
Technical Analyst
Ankur Lakhotia
Technical Analyst
For any Queries, Suggestions and Feedback kindly mail to [email protected]
Research Team: 022-3952 6600
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