Technical Research | February 23, 2012
Daily Technical Report
Sensex (18145) / NIFTY (5505)
Exhibit 1: Nifty Daily Chart
Yesterday, once again indices opened on a flat note and
moved higher during the first half the session. However, a
sharp correction during the latter part of the day pulled
indices significantly lower to close well within the negative
territory. On the sectoral front, Realty, Consumer Durables
and Metal counters tumbled sharply during yesterday’s
session, whereas IT sector ended marginally in the positive
territory. The advance to decline ratio was strongly in favor
of declining counters. (A=769 D=2208) (Source
-
www.bseindia.com)
Formation:
• The daily chart depicts a “Bearish Engulfing” pattern.
• On the Weekly chart, indices have closed well above
the “Horizontal Resistance Line” placed at 17908 /
5400 level.
• We are observing a negative crossover in momentum
oscillator’s viz., the “RSI” and the “Stochastic”
• The “RSI-Smoothened” oscillator on the daily chart is
still placed in extreme overbought territory.
Source: Falcon
Trading strategy:
Actionable points:
View
Negative below 5483
After a quiet opening, indices stayed in a narrow range for
Expected Targets
5460 - 5390
most of the part of the day. However, significant selling
Resistance levels
5545 - 5561
pressure during the last hour of the session pulled indices
near
5500 mark. We are now observing a “Bearish
Engulfing” pattern on the daily chart coupled with the
negative crossover in RSI & Stochastic oscillator. Hence, if
indices sustain below 18043 / 5483 level then they are
likely to drift towards 18000 - 17770 / 5460 - 5390 levels.
On the upside, 18234 - 18293 / 5545 - 5561 levels may
act as resistance in coming trading session.
Traders are advised to trade with caution as the market
may witness immense volatility in the latter half of today’s
session on account of derivative expiry of the February
contracts.
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1
Technical Research | February 23, 2012
Bank Nifty Outlook - (10747)
Exhibit 2: Bank Nifty Daily Chart
Finally, yesterday we witnessed a much awaited
correction of the continuous rally started from Jan 2012
and Bank Nifty ended with loss of approximately 4%. The
fall was mainly led by State Bank of India, which closed
almost 8% lower. As expected and mentioned in our
previous reports, the fall was very sharp because of the
overbought condition of “RSI Smoothened” oscillator and
Bank Nifty tested the mentioned support of 10775 to
close marginally below the same. Now, on the Daily
chart, we are witnessing negative crossover in most of the
momentum oscillators viz., “RSI”, “Stochastic”, “RSI
Smoothened” coupled with an upward sloping trend line
breakdown in hourly chart. Hence, if Bank Nifty sustains
below yesterday’s low of 10714 then the index may
correct further till 10630 - 10340 levels. On the upside,
10810 - 10875 levels could act as resistance in coming
trading session.
Actionable points:
View
Negative Below 10714
Expected Target
10630 - 10340
Resistance Levels
10810 - 10875
Source: Falcon
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2
Technical Research | February 23, 2012
Negative Bias:
Expected
Stock Name
CMP
5 Day EMA
20 Day EMA
Remarks
Target
Acc
1325.3
1349
1301.7
1270
View will change above 1360
Techm
632.4
650.7
644
600
View will change above 660
For Private Circulation Only |
3
Technical Research | February 23, 2012
Daily Pivot Levels for Nifty 50 Stocks
SCRIPS
S2
S1
PIVOT
R1
R2
SENSEX
17,827
17,986
18,255
18,414
18,683
NIFTY
5,404
5,454
5,542
5,593
5,681
BANKNIFTY
10,383
10,565
10,896
11,078
11,409
ACC
1,282
1,304
1,337
1,359
1,393
AMBUJACEM
158
161
167
171
177
AXISBANK
1,148
1,182
1,238
1,272
1,327
BAJAJ-AUTO
1,757
1,780
1,810
1,833
1,863
BHARTIARTL
328
338
350
360
372
BHEL
284
295
312
323
339
BPCL
596
610
624
638
653
CAIRN
371
379
390
397
408
CIPLA
311
315
320
323
328
DLF
314
318
324
329
335
DRREDDY
220
229
245
254
270
GAIL
1,626
1,636
1,651
1,661
1,676
HCLTECH
365
370
377
382
390
HDFC
478
485
492
499
505
HDFCBANK
686
694
707
715
728
HEROMOTOCO
520
526
532
538
545
HINDALCO
2,084
2,112
2,155
2,183
2,226
HINDUNILVR
140
144
151
155
162
ICICIBANK
372
375
379
383
387
IDFC
928
943
966
981
1,005
INFY
137
141
147
151
158
ITC
2,862
2,907
2,950
2,996
3,039
JINDALSTEL
205
207
208
210
211
JPASSOCIAT
583
598
624
638
664
KOTAKBANK
75
78
82
84
88
LT
552
560
571
579
590
M&M
1,383
1,403
1,434
1,454
1,484
MARUTI
718
730
748
761
779
NTPC
1,257
1,282
1,306
1,330
1,354
ONGC
177
180
184
187
190
PNB
280
286
295
302
311
POWERGRID
973
1,000
1,045
1,072
1,117
RANBAXY
108
109
111
112
114
RCOM
423
431
442
449
460
RELCAPITAL
86
92
101
107
116
RELIANCE
813
823
840
851
868
RELINFRA
581
598
625
641
668
RPOWER
115
119
125
129
136
SAIL
101
104
108
111
116
SBIN
2,088
2,172
2,320
2,404
2,553
SESAGOA
219
228
243
252
267
SIEMENS
780
794
814
829
849
STER
110
115
123
128
137
SUNPHARMA
539
544
549
554
558
SUZLON
25
27
29
31
34
TATAMOTORS
260
264
270
274
280
TATAPOWER
105
108
113
116
121
TATASTEEL
450
460
478
489
507
TCS
1,212
1,232
1,249
1,270
1,287
WIPRO
434
438
445
449
456
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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