Daily Technical Report
January 19, 2015
Sensex (28122) / Nifty (8514)
Exhibit 1: Nifty Daily Chart
On Friday, our benchmark index opened on a flat note
despite negative cues from the other Asian bourses. The
index then consolidated within a narrow range throughout
the session and eventually closed with very nominal gains.
Barring IT and Banking, all other sectors closed in the
positive territory amongst which the Consumer Durables,
FMCG, Healthcare and Capital Goods were the major
gainers. The advance to decline ratio was marginally in
favor of the declining counters. (A=1361 D=1566)
(Source-www.bseindia.com)
Formations
The ’89-day EMA’ and the ’89-week EMA’ are placed
at 27168 / 8159 and 23793 / 7125 levels, respectively.
The ’20-day EMA’ and the ‘20-week EMA’ are placed
at 27510 / 8313 and 27241 / 8177 levels, respectively.
Source: Falcon
Actionable points:
Trading strategy:
The Nifty clearly outperformed its peer global indices by
View
Neutral
closing only a tad below the highest point of the week.
Resistance Levels
8550 - 8626
Trading in the first half of the week was very much in-line
Support Levels
8450 - 8380
with our expectation where the Nifty faced strong resistance
around the 8350 mark. However, on Thursday, it opened
substantially higher as the bulls gave a big thumps up to the
Looking at the ongoing optimism and the ‘Breakaway
RBI’s move of cutting the repo rate by 25 basis points
Gap’ theory, it can be concluded that the near term base
before time. The central bank’s move surprised most market
has now been shifted from 8000 to 8300 on the Nifty as
participants, including us. The following price action created
the gap area of 8326 to 8380 would now act as a strong
a ‘Breakaway Gap’ on the daily chart as the Nifty opened
support; whereas on the up side, 8550 - 8626 are seen
above the ‘Downward Sloping Trend Line’ level of 8380.
as immediate resistance levels for the index.
We must accept the fact that the RBI’s surprising move
caught us completely on the wrong foot. Having said that,
although the current momentum is quite strong on the
upside, we do not have the conviction to go aggressively
long in the market mainly due to formation of a ‘Bearish
Engulfing’ pattern on the monthly chart and the possibility
of forming a ‘Lower Top’ on the weekly chart. This
hypothesis will be negated once the Nifty surpasses the
8626.95 (all-time high) mark on a closing basis. For us, a
prudent strategy would be to wait-n-watch for further
development on the chart and meanwhile, it’s advisable to
focus on stock specific movements.
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Daily Technical Report
January 19, 2015
Bank Nifty Outlook - (19223)
Exhibit 2: Bank Nifty Daily Chart
On Friday, the Bank Nifty’s price movement was quite
similar to the benchmark index. The banking index
remained within a narrow range throughout the session
and eventually closed with a negligible cut. Since, we are
not observing any major change in the chart structure; we
reiterate that the Bank Nifty too doesn’t give us comfort to
go aggressively long at this juncture. On the daily chart,
we are clearly observing a strong resistance zone around
19400 - 19500, which is the higher end of the ‘Rising
Wedge’ pattern (please refer the exhibit). Hence, we
would maintain our wait-n-watch approach on the index
and would concentrate more on individual stocks. On the
downside, 19000 - 18800 levels are likely to act as a
strong support zone for the index.
Actionable points:
View
Neutral
Resistance Levels
19400 - 19500
Support Levels
19000 - 18800
Source: Falcon
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Daily Technical Report
January 19, 2015
Daily Pivot Levels for Nifty 50 Stocks
SCRIPS
S2
S1
PIVOT
R1
R2
SENSEX
27,850
27,986
28,081
28,217
28,312
NIFTY
8,420
8,467
8,499
8,546
8,577
BANKNIFTY
19,035
19,129
19,202
19,297
19,370
ACC
1,486
1,502
1,516
1,532
1,545
AMBUJACEM
234
237
240
242
245
ASIANPAINT
828
836
847
855
866
AXISBANK
507
511
516
520
525
BAJAJ-AUTO
2,370
2,395
2,419
2,444
2,467
BANKBARODA
1,066
1,074
1,086
1,093
1,105
BHARTIARTL
332
337
345
350
358
BHEL
261
267
271
278
281
BPCL
645
652
663
670
680
CAIRN
226
229
233
236
240
CIPLA
634
641
645
652
656
COALINDIA
358
369
375
385
391
DLF
139
142
147
151
155
DRREDDY
3,207
3,246
3,271
3,310
3,334
GAIL
416
420
424
429
433
GRASIM
3,567
3,602
3,650
3,684
3,732
HCLTECH
1,551
1,595
1,620
1,664
1,688
HDFC
1,180
1,187
1,198
1,205
1,216
HDFCBANK
989
995
1,005
1,011
1,021
HEROMOTOCO
2,841
2,869
2,920
2,948
2,998
HINDALCO
134
136
140
142
146
HINDUNILVR
916
928
938
950
960
ICICIBANK
345
349
352
356
359
IDFC
163
165
167
169
171
INDUSINDBK
803
817
828
842
852
INFY
2,082
2,100
2,130
2,148
2,178
ITC
351
356
359
363
366
JINDALSTEL
146
148
151
154
157
KOTAKBANK
1,372
1,384
1,392
1,404
1,412
LT
1,536
1,564
1,588
1,616
1,640
LUPIN
1,412
1,420
1,434
1,442
1,456
M&M
1,259
1,282
1,297
1,320
1,336
MARUTI
3,578
3,597
3,611
3,630
3,644
NMDC
131
133
135
137
138
NTPC
137
139
140
142
144
ONGC
339
343
347
352
356
PNB
202
203
206
208
211
POWERGRID
138
142
146
151
154
RELIANCE
843
856
866
879
889
SBIN
309
312
316
319
323
SSLT
188
191
193
195
198
SUNPHARMA
815
833
843
861
872
TATAMOTORS
515
520
528
534
541
TATAPOWER
80
82
82
83
84
TATASTEEL
373
378
382
387
391
TCS
2,460
2,496
2,520
2,557
2,581
TECHM
2,753
2,785
2,803
2,834
2,852
ULTRACEMCO
2,991
3,031
3,085
3,125
3,179
WIPRO
547
551
557
561
568
ZEEL
360
373
380
393
401
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Daily Technical Report
January 19, 2015
Research Team Tel: 022 - 30940000
E-mail: [email protected]ng.com
Website: www.angelbroking.com
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Sameet Chavan
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Technical Analyst
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