Daily Technical Report
July 14, 2014
Sensex (25024) / Nifty (7460)
Exhibit 1: Nifty Daily Chart
The concluding session of the week started on a slightly
positive note but failed to sustain at higher levels on the
back of tremendous selling pressure seen across the
broader market. This pessimism continued throughout the
session and as a result, the index trimmed by another one
and half a percent to close at the lowest point of the week.
On the sectoral front, the Oil & Gas, Capital goods, Realty
and Power sectors remained under tremendous selling
pressure; whereas the IT and Healthcare counters managed
to outperformed the benchmark index. The advance to
decline ratio was strongly in favor of the declining counters.
(A=677 D=2252) (Source-www.bseindia.com)
Formations
The ’89-day EMA’ and the ’89-week EMA’ are placed at
23875/ 7128 and 20982/ 6278 levels, respectively.
The ’20-day EMA’ and the ‘20-week EMA’ are placed at
25374 / 7578 and 23734 / 7086 levels, respectively.
Source: Falcon
Actionable points:
Trading strategy:
Finally, after a few range bound weeks, our market
View
Neutral
witnessed a decent price movement; but unfortunately, it
Support Levels
7440 - 7360
turned out to be in favor of the bears. The concluded week
Resistance Levels
7537 - 7565
was full of events and hence, we observed a complete
roller-coaster ride throughout the week. Technically
speaking, the Nifty has now closed below the important
On the flipside, 7560 - 7620 levels are seen as important
support level of 7480, which has resulted in the formation
resistance levels for the index. A sustainable move above this
of a ‘Bearish Engulfing’ Japanese candlestick pattern on the
level may negate the possibility of the above mentioned
weekly chart. An occurrence of such pattern at the market
hypothesis.
top does not bode well for the bulls. In addition, the weekly
We reiterate that the correction which we are expecting is
‘RSI-Smoothened’ momentum oscillator is on the verge of
purely for the near term. The higher degree trend remains
confirming a negative crossover after turning downside
strongly bullish and hence, it’s advisable to use every
from the extreme overbought territory. We also have one
meaningful correction to accumulate stocks from a value
more interesting observation, which is the ‘Negative
buying proposition.
Divergence’ (please refer to the exhibit) in the daily ‘RSI’
momentum oscillator. This technical condition happens
when prices make new highs and corresponding ‘RSI’
makes lower highs. Generally, ‘Three-Point’ divergence is
considered as a strong signal. Hence, considering all these
technical evidences, there is a high possibility of a near term
correction if the Nifty breaches the 7440 mark and sustains
in the area. In this scenario, the possibility of retesting 7300
- 7220 cannot be ruled out.
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Daily Technical Report
July 14, 2014
Bank Nifty Outlook - (14447)
Exhibit 2: Bank Nifty Daily Chart
On Friday, unlike our benchmark index, the Bank Nifty
opened slightly lower and right from the initial trade,
started to show their underperformance. As the day
progressed, the selling pressure aggravated and as a
result, managed to close on a weak note by losing
another two and half a percent. This price action resulted
in a ‘Bearish Engulfing’ Japanese candlestick pattern on
the weekly chart. An occurrence of such pattern seems to
have applied brakes on the weekly optimism for a time
being. Hence, if the selling pressure persists in the
market, the banking index may test lower levels of
14300 - 14150. On the flipside, 14650 - 14750 is likely
to act as a strong resistance zone for the Bank Nifty.
Actionable points:
View
Neutral
Support Levels
14300 - 14150
Resistance Levels
14650 - 14750
Source: Falcon
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Daily Technical Report
July 14, 2014
Daily Pivot Levels for Nifty 50 Stocks
SCRIPS
S2
S1
PIVOT
R1
R2
SENSEX
24,614
24,819
25,184
25,389
25,754
NIFTY
7,332
7,396
7,511
7,575
7,690
BANKNIFTY
14,079
14,263
14,591
14,775
15,103
ACC
1,382
1,404
1,433
1,454
1,483
AMBUJACEM
207
211
216
220
225
ASIANPAINT
550
560
575
584
599
AXISBANK
1,766
1,791
1,833
1,859
1,901
BAJAJ-AUTO
2,066
2,100
2,137
2,171
2,208
BANKBARODA
746
765
797
815
848
BHARTIARTL
328
332
334
338
341
BHEL
205
214
231
240
256
BPCL
540
551
567
578
594
CAIRN
334
338
346
350
358
CIPLA
422
429
437
444
452
COALINDIA
347
355
365
373
383
DLF
191
200
215
224
239
DRREDDY
2,569
2,635
2,681
2,747
2,794
GAIL
446
451
456
461
467
GRASIM
3,121
3,166
3,245
3,290
3,369
HCLTECH
1,468
1,485
1,497
1,513
1,526
HDFC
959
974
996
1,011
1,033
HDFCBANK
795
803
817
826
840
HEROMOTOCO
2,352
2,392
2,442
2,483
2,532
HINDALCO
158
162
170
174
182
HINDUNILVR
616
629
638
651
660
ICICIBANK
1,317
1,337
1,371
1,391
1,425
IDFC
141
145
151
155
162
INDUSINDBK
523
530
537
543
551
INFY
3,221
3,274
3,353
3,406
3,485
ITC
339
342
346
350
354
JINDALSTEL
262
271
287
296
312
KOTAKBANK
827
843
863
879
899
LT
1,476
1,525
1,599
1,649
1,723
LUPIN
1,004
1,029
1,050
1,075
1,096
M&M
1,112
1,138
1,156
1,182
1,199
MARUTI
2,424
2,464
2,513
2,553
2,601
MCDOWELL-N
2,191
2,243
2,307
2,360
2,424
NMDC
151
156
164
169
177
NTPC
144
147
150
153
156
ONGC
385
391
398
403
410
PNB
835
855
889
909
943
POWERGRID
126
129
134
137
142
RELIANCE
939
953
977
991
1,016
RELINFRA
667
693
738
764
809
SBIN
2,329
2,377
2,460
2,509
2,592
SSLT
281
287
291
297
301
SUNPHARMA
704
724
739
759
773
TATAMOTORS
433
439
450
457
468
TATAPOWER
97
99
104
106
110
TATASTEEL
483
493
508
518
533
TCS
2,340
2,367
2,389
2,416
2,437
TECHM
1,996
2,023
2,054
2,081
2,113
ULTRACEMCO
2,416
2,452
2,491
2,527
2,566
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Daily Technical Report
July 14, 2014
Research Team Tel: 022 - 30940000
E-mail: [email protected]
Website: www.angelbroking.com
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Sameet Chavan
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Technical Analyst
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