Technical Research | October 18, 2011
Daily Technical Report
Sensex (17025) / NIFTY (5118)
Yesterday we witnessed a gap-up opening in-line with
Exhibit 1: Nifty Daily Chart
positive global cues. However, indices failed to sustain at
higher levels and selling pressure dragged indices to close
marginally below Friday’s closing. On the sector front, Oil
& Gas, Capital Goods and Power were among the major
losers whereas Auto and Consumer Durables ended on a
gaining side. The advance decline ratio was marginally in
favor of declining counters (A=1320 D=1432). (Source -
www.bseindia.com)
Formation
• We are observing a positive crossover in Weekly “RSI -
Smoothened” momentum oscillator.
• On the Daily as well as Weekly chart, there is a
“Horizontal Trend Line” resistance at 17256 / 5198 level.
• The “20 EMA” on the Weekly chart is placed at 17260 /
Source: Falcon
5177 level.
Actionable points:
Trading strategy:
View
Bearish
Markets opened on an optimistic note but failed to sustain
Negative below
5084
at higher levels as they were nearing strong resistance zone
Expected Target
5000 - 4964
of 17260 / 5198 level. Thus, indices corrected to test hourly
Resistance Level
5160 - 5198
20 EMA which was placed around 16950 / 5085 level.
Going forward, we reiterate that until and unless indices
move beyond the 17260 / 5198 level, every attempt to
scale this mark would attract strong selling pressure. On
the downside, yesterday’s low of 16928 / 5084 level may
act as a support in coming trading session. A violation of
this level may reinforce selling pressure which can drag
indices lower to test 16316 - 16510 / 5034 - 4964 levels.
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1
Technical Research | October 18, 2011
Bank Nifty Outlook - (9721)
Exhibit 2: Bank Nifty Daily Chart
Bank Nifty has managed to give a close above mentioned
resistance level of 9685 and has negated bearish implication
of “Bearish Doji Star” on daily chart. However, we are again
witnessing formation of “Doji” candle pattern. This is a sign
of indecisiveness prevailing at current levels. If Bank Nifty
sustains above yesterday’s high of 9788, then it is likely to
rally towards 9970 level, which is a prior swing high.
On the downside, 9550 - 9400 level may act as support
levels for the day.
Actionable points:
View
Neutral
Support Level
9550 - 9400
Resistance Level
9788 - 9970
Source: Falcon
Stock Recommendations:
Exhibit 3: Tata Steel (Oct Fut) Daily chart
Stock - Tata Steel (Oct Fut)
Action - Sell
Last close
` 435.20
Selling Range ` 433-436
Stop Loss
` 442.5
Target
` 416
Justification
- On the Daily chart the stock is facing
resistance at 61.8% Fibonacci retracement level of fall from
` 500 to ` 388 which is at ` 457. Also this level coincides
with a gap area formed on 22nd Sept 2011.Further on
hourly chart we are witnessing negative crossover in “5 &
20 EMA”. Hence, we advise selling the stock in a range of `
433-436 for a target of ` 416 in coming 4-6 trading
sessions.
Source: Falcon
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2
Technical Research | October 18, 2011
Positive Bias:
Stock Name
5 Day EMA
20 Day EMA
Expected Target
Remarks
CrompGreaves
162.3
156
179
View will change below 159
Exide Inds
135.1
134.4
142.4
View will change below 132
Negative Bias:
Stock Name
5 Day EMA
20 Day EMA
Expected Target
Remarks
Reliance Capital
341.7
357.7
320
View will change above 356
Orchid Chem
167.9
171.2
160
View will change above 174
Infy
2685.4
2537.7
2600
View will change above 2765
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3
Technical Research | October 18, 2011
Daily Pivot Levels for Nifty 50 Stocks
SCRIPS
S2
S1
PIVOT
R1
R2
SENSEX
16,787
16,906
17,047
17,166
17,308
NIFTY
5,045
5,082
5,121
5,157
5,197
BANKNIFTY
9,603
9,662
9,725
9,784
9,847
ACC
1,092
1,102
1,111
1,121
1,131
AMBUJACEM
146
149
151
155
157
AXISBANK
1,096
1,109
1,121
1,134
1,146
BAJAJ-AUTO
1,611
1,633
1,648
1,669
1,684
BHARTIARTL
372
376
381
386
391
BHEL
317
321
329
334
341
BPCL
611
622
640
650
668
CAIRN
285
292
296
303
307
CIPLA
281
286
288
292
295
DLF
229
232
235
239
242
DRREDDY
1,484
1,497
1,513
1,526
1,542
GAIL
402
406
412
416
422
HCLTECH
426
433
439
446
452
HDFC
659
666
672
679
685
HDFCBANK
469
473
477
482
485
HEROMOTOCO
1,946
1,969
1,999
2,022
2,051
HINDALCO
127
129
130
132
133
HINDUNILVR
328
331
333
336
338
ICICIBANK
880
890
896
906
912
IDFC
119
121
124
126
128
INFY
2,699
2,723
2,744
2,768
2,789
ITC
202
204
205
207
208
JINDALSTEL
508
515
522
529
536
JPASSOCIAT
70
71
73
74
75
KOTAKBANK
460
466
473
479
486
LT
1,348
1,364
1,391
1,408
1,435
M&M
802
807
813
819
825
MARUTI
987
1,019
1,043
1,075
1,098
NTPC
164
166
170
172
175
ONGC
265
267
269
272
274
PNB
954
962
973
981
992
POWERGRID
96
97
98
99
100
RANBAXY
487
492
498
504
510
RCOM
74
75
77
78
80
RELCAPITAL
320
328
340
349
361
RELIANCE
807
820
845
858
882
RELINFRA
408
413
420
425
432
RPOWER
84
85
87
88
90
SAIL
102
104
106
108
110
SBIN
1,853
1,872
1,903
1,922
1,952
SESAGOA
214
217
220
223
226
SIEMENS
809
817
832
841
856
STER
118
119
121
122
124
SUNPHARMA
458
465
473
480
487
SUZLON
37
37
38
38
39
TATAMOTORS
179
184
187
192
196
TATAPOWER
98
99
100
101
102
TATASTEEL
429
435
439
445
449
TCS
1,086
1,103
1,129
1,146
1,171
WIPRO
348
352
359
364
371
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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