Daily Technical Report
May 19, 2014
Sensex (24122) / Nifty (7203)
Exhibit 1: Nifty Daily Chart
On Friday, our benchmark index opened with an upside
gap of more than a two percent as indicated by the pre-
opening session. This momentum continued in the initial
hour which resulted in a massive intraday gain of more
than six percent. However, strong profit booking in the latter
part led the index to close with nearly a percent gain. On
the sectoral front, the Banking, Realty, Capital Goods Oil &
Gas sectors were among the major gainers; whereas the IT,
TECK and Healthcare counters underperformed the
benchmark indices. The advance to decline ratio was
strongly in favor of the advancing counters (A=1380
D=1430) (Source-www.bseindia.com)
Formation
The ’89-day EMA’ and the ’89-week EMA’ are placed at
21922 / 6538 and 20171 / 6038 levels, respectively.
The ’20-day EMA’ and the ‘20-week EMA’ are placed at
23035 / 6876 and 21997 / 6564 levels, respectively.
Source: Falcon
Trading strategy:
Actionable points:
View
Neutral
Finally, the much awaited election result day ended with a
Support Level
7067
pronounced rise in the equity markets. Our benchmark
Resistance Level
7564
index opened higher on the day and the euphoric
sentiments across the broader market pushed the index
higher by nearly 450 points in merely the initial 60 minutes
of trade. In the process, it posted a new all time high, well
However, it is difficult to predict the precise time frame for
above the 7500 mark. However, these levels were short
the Nifty to reach this target as the important event has
lived and could not be sustained as traders chose to take
already unfolded. We reiterate that this market has now
some money off the table post the event, which was quite
become a buy on dips market and advise traders to use
evident after witnessing such a huge rally. Although the
any meaningful correction to accumulate stocks with a
Nifty closed nearly 350 points lower than the morning high,
value buying proposition. On the downside, the strong
we maintain our positive stance on the market. However,
base for the Nifty has now shifted to 6650 from 6350.
we expect the index to now consolidate in a wider trading
range of 7564 to 7067 over the next few trading sessions.
With a broader perspective, we maintain our view that the
Nifty has entered a strong bull-run and is likely to make
new highs over the next few months considering the
breakout of the ‘Bullish Ascending Triangle’. At this
juncture, we observe that the Nifty has now closed a tad
below the 127% ‘Price Extension’ (please refer the exhibit)
level (7280) of the rally seen from 4531.15 (December
2011 Low) to 6229.45 (May 2013 High) after witnessing
some bit of profit booking post the event. Going forward,
we expect the Nifty to continue its upward momentum and
test the 161.8% ‘Price Extension’ level of 7750.
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Daily Technical Report
May 19, 2014
Bank Nifty Outlook - (14853)
Exhibit 2: Bank Nifty Daily Chart
On Friday, the banking index too opened with a huge
upside gap of almost three percent. This positive
momentum pushed the index substantially higher and one
point of the day, the Bank Nifty was trading nearly Ten
percent higher than the previous close. However, similar
to Nifty, banking index too faced significant profit
booking as the day progressed. Due to this banking index
trimmed major portion of its early morning gains and
managed to close with more than four percent gains.
Going forward, though the major trend remains bullish,
we expect some consolidation in coming trading sessions.
We expect the index to move in a broader range of
14468 to 15742. Traders are advised to adopt a stock
specific approach and trade with strict stop losses.
Actionable points:
View
Neutral
Source: Falcon
Support Level
14468
Resistance Level
15742
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Daily Technical Report
May 19, 2014
Daily Pivot Levels for Nifty 50 Stocks
SCRIPS
S2
S1
PIVOT
R1
R2
SENSEX
22,954
23,538
24,457
25,041
25,959
NIFTY
6,866
7,035
7,299
7,467
7,732
BANKNIFTY
13,747
14,300
15,021
15,574
16,295
ACC
1,346
1,388
1,424
1,466
1,502
AMBUJACEM
210
217
229
236
248
ASIANPAINT
515
526
538
549
561
AXISBANK
1,598
1,676
1,763
1,841
1,928
BAJAJ-AUTO
1,791
1,862
1,978
2,048
2,165
BANKBARODA
867
901
955
989
1,043
BHARTIARTL
314
323
334
343
354
BHEL
217
224
230
237
242
BPCL
499
525
552
579
606
CAIRN
332
336
342
346
352
CIPLA
363
375
400
413
438
COALINDIA
325
335
350
361
376
DLF
156
163
171
178
187
DRREDDY
2,339
2,373
2,434
2,468
2,529
GAIL
386
398
415
426
443
GRASIM
2,813
2,941
3,108
3,236
3,403
HCLTECH
1,303
1,334
1,390
1,421
1,477
HDFC
827
856
906
936
986
HDFCBANK
749
777
815
843
882
HEROMOTOCO
2,115
2,257
2,522
2,663
2,929
HINDALCO
135
138
142
145
149
HINDUNILVR
554
567
588
601
622
ICICIBANK
1,317
1,391
1,492
1,566
1,668
IDFC
119
122
125
128
132
INDUSINDBK
521
542
564
585
607
INFY
2,911
3,044
3,192
3,325
3,473
ITC
331
344
366
379
401
JINDALSTEL
243
257
268
282
293
KOTAKBANK
849
877
914
942
979
LT
1,331
1,379
1,437
1,486
1,544
LUPIN
925
942
962
979
999
M&M
1,052
1,083
1,134
1,165
1,215
MARUTI
2,025
2,089
2,204
2,267
2,382
MCDOWELL-N
2,582
2,614
2,647
2,679
2,712
NMDC
153
158
161
165
168
NTPC
125
129
134
137
142
ONGC
347
366
391
409
435
PNB
846
882
926
962
1,006
POWERGRID
112
116
121
124
129
RELIANCE
1,012
1,046
1,096
1,129
1,179
RELINFRA
570
598
621
649
672
SBIN
2,202
2,310
2,408
2,516
2,614
SSLT
189
202
210
223
232
SUNPHARMA
596
605
620
628
643
TATAMOTORS
431
441
453
462
474
TATAPOWER
86
88
91
93
96
TATASTEEL
393
417
451
475
510
TCS
2,018
2,090
2,171
2,243
2,325
TECHM
1,721
1,772
1,816
1,867
1,911
ULTRACEMCO
2,050
2,192
2,373
2,515
2,696
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Daily Technical Report
May 19, 2014
Research Team Tel: 022 - 30940000
E-mail: [email protected]
Website: www.angelbroking.com
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Research Team
Sameet Chavan
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Technical Analyst
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