Technical Research | August 16, 2011
Daily Technical Report
Sensex (16840) / Nifty (5073)
Our benchmark indices opened with a marginal upside gap
Exhibit 1: Sensex Daily Chart
but could not sustain at higher levels as immense selling
pressure led indices to give a close in negative territory.On
the sector front IT ,Teck and Banking counters were among
the major losers. The advance decline ratio was in favor of
declining counters (A=1257 D=1569). (Source
-
www.bseindia.com)
Gap Area
Formation
• On the Weekly chart, we are observing a “Horizontal
Trend Line” resistance at 17300 / 5180 level.
• The ADX (14) line has moved up from the last week’s
level of 18.50 to the current week’s level of 20.75 along
Source: Falcon
with - DI (Negative Directional Index) moving upwards.
• The Gap area formed on August 5, 2011, in the range
We advise traders to stay light on their positions and
of 17360 to 17665 / 5230 to 5325 would prove to be a
trade with proper stop losses. Investors can use the dip
towards
4800 to enter (partial buying advised) in
crucial resistance in the near term.
counters with strong fundamentals and good long-term
prospects.
Trading strategy:
Markets opened with a huge downside gap as negative
sentiments continued to sway across global markets. Due to
extreme pessimism, our benchmark indices did not even
manage to cross last Friday’s high of 17358 / 5230 and
collapsed to test the support level of 16650 / 4950. We are
now observing a “Horizontal Trend Line” around 17300 /
5180 level, which may act as a strong resistance in the
coming trading sessions. This horizontal trend line, coupled
with the low of the gap area, is now expected to act as a
strong resistance zone for the markets. This resistance band
is at 17300 - 17360/ 5180 - 5230 levels. As a result, the
trading range for indices in the coming week is expected to
be from 17300 to 16430 / 5180 - 4945. If indices manage
to cross 17360 / 5230 level, then they are likely to rally
towards the next resistance level of 17665 / 5325. A
violation of 16430 / 4945 level along with the ADX line
rising above 20 -21 level may attract immense selling
pressure, which can drag indices to lower levels of 16000 /
4800.
For Private Circulation Only |
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Technical Research | August 16, 2011
Daily Pivot Levels For Nifty 50 Stocks
SCRIPS
S2
S1
PIVOT
R1
R2
SENSEX
16,495
16,667
16,957
17,129
17,419
NIFTY
4,966
5,019
5,107
5,160
5,248
ACC
973
986
1,003
1,016
1,033
AMBUJACEM
128
129
131
133
134
AXISBANK
1,174
1,191
1,211
1,229
1,249
BAJAJ-AUTO
1,426
1,440
1,455
1,469
1,483
BHARTIARTL
376
382
392
399
408
BHEL
1,662
1,692
1,735
1,765
1,808
BPCL
676
684
689
696
702
CAIRN
273
276
279
282
285
CIPLA
288
290
294
297
301
DLF
192
196
203
207
214
DRREDDY
1,462
1,474
1,491
1,503
1,520
GAIL
434
441
446
453
457
HCLTECH
393
401
411
418
428
HDFC
648
658
674
684
699
HDFCBANK
451
459
473
481
495
HEROMOTOCO
1,830
1,860
1,887
1,917
1,944
HINDALCO
143
146
153
157
163
HINDUNILVR
310
313
316
318
322
ICICIBANK
913
926
946
959
979
IDFC
115
117
121
123
127
INFY
2,256
2,316
2,402
2,461
2,548
ITC
193
195
198
201
204
JINDALSTEL
509
517
523
531
537
JPASSOCIAT
59
61
63
65
67
KOTAKBANK
440
449
464
473
487
LT
1,605
1,626
1,647
1,668
1,689
M&M
725
732
738
745
751
MARUTI
1,220
1,233
1,251
1,264
1,282
NTPC
172
174
176
178
181
ONGC
272
276
280
284
288
PNB
1,056
1,071
1,097
1,112
1,138
POWERGRID
102
103
104
104
105
RANBAXY
473
478
487
492
500
RCOM
81
83
86
87
90
RELCAPITAL
414
426
447
459
480
RELIANCE
742
752
767
777
792
RELINFRA
470
477
486
492
501
RPOWER
89
90
92
92
94
SAIL
105
108
111
114
117
SBIN
2,080
2,139
2,208
2,267
2,336
SESAGOA
230
235
240
245
249
SIEMENS
838
854
876
892
914
STER
128
131
135
138
142
SUNPHARMA
467
472
478
483
489
SUZLON
40
41
42
43
44
TATAMOTORS
757
778
815
836
873
TATAPOWER
1,036
1,061
1,101
1,126
1,166
TATASTEEL
460
467
479
486
498
TCS
904
926
959
980
1,013
WIPRO
325
334
346
355
367
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: 022-3935 7600
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