Technical Research | October 19, 2011
Daily Technical Report
Sensex (16748) / NIFTY (5038)
Yesterday markets opened on a pessimistic note and traded
Exhibit 1: Nifty Daily Chart
with negative bias till the first half of the session, but we
witnessed a minor bounce after making a low of 16669 /
5011. On the sector front, IT, Teck and Realty were among
the major losers. The advance decline ratio was strongly in
favor of declining counters (A=951 D=1814). (Source -
www.bseindia.com)
Formation
• We are witnessing a downside gap area of 16928 and
16824 / 5084 and 5057 created in yesterday’s session.
• The “20 EMA” on the Daily chart is placed at 16640 /
5000 level.
• On the Daily chart, the momentum oscillators viz., the
RSI and the Stochastic are negatively poised.
Source: Falcon
Trading strategy:
Actionable points:
Markets opened with a downside gap mainly due to
View
Neutral
negativity across global indices. Subsequently, markets
Resistance Levels
5084 - 5140
corrected gradually towards the daily “20 EMA” which is
Support Levels
5000 - 4964
placed around 16640 / 5000 and managed to hold this
support for the day. However, the momentum oscillators on
the daily chart are negatively poised which indicates that
negative momentum is likely to gain strength if indices
sustain below 16640 / 5000 level. In this case, indices may
drift lower to test 16510 - 16374 / 4964 - 4900 levels. On
the upside, 16928 - 17110 / 5084 - 5140 levels may act
as a resistance in coming trading session.
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1
Technical Research | October 19, 2011
Bank Nifty Outlook - (9584)
Exhibit 2: Bank Nifty Daily Chart
Bank nifty opened with a downside gap and traded in a
narrow range throughout the day. Further, Bank nifty has
managed to take support and bounce from the daily “20
EMA” which is placed at 9457 level. We are now witnessing
a “Hammer” Japanese candlestick formation on the daily
chart near this support level. This is a bullish price reversal
pattern and requires confirmation. If Bank Nifty sustain
above yesterday’s high of 9635, then it is likely to rally
towards 9788 - 9970 levels.
On the downside, 9490 - 9400 levels may act as a support
for the day.
Actionable points:
View
Bullish
Positive Above
9635
Expected Target
9788 - 9970
Support Level
9490 - 9400
Source: Falcon
Stock Recommendations:
Exhibit 3: Divis Lab (Oct Fut) Daily chart
Stock - Divis Labs (Oct Fut)
Action - Sell
Last close
` 727.25
Selling Range ` 728-731.50
Stop Loss
` 738.80
Target
` 700
Justification - On the daily chart, the current price action is
near upward sloping trend line. The momentum oscillators
viz. RSI and Stochastic are negatively poised which indicates
possibility of a breakdown at ` 726.Thus, we advise selling
this stock in a range of ` 728-731.50 for a target of ` 700
in coming 2 - 3 trading sessions.
Source: Falcon
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2
Technical Research | October 19, 2011
Positive Bias:
Stock Name
5 Day EMA
20 Day EMA
Expected Target
Remarks
Coal India
329
343.1
342
View will change below 318
KFA
22.1
22.6
26
View will change below 21.50
Sintex
117.9
125.3
127
View will change below 115
Negative Bias:
Stock Name
5 Day EMA
20 Day EMA
Expected Target
Remarks
Hdil
96.8
98.8
89
View will change above 98
OBC
299.1
295.8
285
View will change above 305
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3
Technical Research | October 19, 2011
Daily Pivot Levels for Nifty 50 Stocks
SCRIPS
S2
S1
PIVOT
R1
R2
SENSEX
16,592
16,670
16,747
16,826
16,903
NIFTY
4,989
5,013
5,035
5,060
5,082
BANKNIFTY
9,429
9,506
9,570
9,648
9,712
ACC
1,089
1,097
1,106
1,115
1,124
AMBUJACEM
148
150
152
154
157
AXISBANK
1,065
1,082
1,093
1,109
1,121
BAJAJ-AUTO
1,567
1,587
1,619
1,639
1,670
BHARTIARTL
367
370
375
379
383
BHEL
316
319
322
325
329
BPCL
624
633
640
649
655
CAIRN
290
293
296
299
303
CIPLA
283
284
287
288
291
DLF
223
227
229
232
235
DRREDDY
1,478
1,488
1,502
1,512
1,526
GAIL
402
408
412
418
421
HCLTECH
387
394
407
414
426
HDFC
659
666
672
679
685
HDFCBANK
468
473
477
482
487
HEROMOTOCO
1,936
1,961
1,988
2,013
2,040
HINDALCO
122
124
126
128
130
HINDUNILVR
323
326
331
334
339
ICICIBANK
855
866
877
888
899
IDFC
119
121
122
124
125
INFY
2,667
2,685
2,705
2,722
2,742
ITC
202
203
204
206
207
JINDALSTEL
490
503
511
524
532
JPASSOCIAT
69
70
71
72
72
KOTAKBANK
456
460
467
471
477
LT
1,325
1,337
1,351
1,363
1,378
M&M
792
800
805
812
817
MARUTI
1,027
1,039
1,052
1,065
1,078
NTPC
165
167
169
170
172
ONGC
258
261
266
269
275
PNB
951
958
964
971
977
POWERGRID
96
97
98
99
100
RANBAXY
476
489
498
512
521
RCOM
72
73
74
75
76
RELCAPITAL
314
318
325
329
336
RELIANCE
804
812
819
827
834
RELINFRA
395
401
408
414
420
RPOWER
84
85
86
87
87
SAIL
102
103
104
104
105
SBIN
1,816
1,841
1,863
1,889
1,911
SESAGOA
211
215
218
222
225
SIEMENS
796
806
814
823
831
STER
113
115
117
119
121
SUNPHARMA
458
462
469
473
480
SUZLON
36
36
37
37
38
TATAMOTORS
174
178
181
185
188
TATAPOWER
98
99
100
101
102
TATASTEEL
417
423
429
435
441
TCS
996
1,015
1,039
1,058
1,083
WIPRO
338
342
347
351
356
Technical Research Team
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4
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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