Technical Research | February 07, 2012

Daily Technical Report Sensex (17707) / NIFTY (5362)

Yesterday, we witnessed a gap up opening in-line with strong global cues and the positive momentum lasted in the first half of the session. A minor correction during the second half dragged indices lower to fill the upside gap created at the opening of the session. On the sectoral front, Realty, Capital Goods and Metal counters were among the major gainers, whereas Health care sector ended with a nominal loss. The advance to decline ratio was in favor of advancing counters. (A=1855 D=1054) (Source www.bseindia.com)

Exhibit 1: Nifty Daily Chart

Formation:
We are now observing a positive crossover in ADX (14) indicator. Indices are hovering around Horizontal Line

resistance of 17908 / 5400. Fridays candle resembled a Hanging Man. This is a bearish pattern but requires confirmation. The RSI-Smoothened oscillator on daily chart is placed in extreme overbought territory.
Source: Falcon

Trading strategy:
Once again for the fifth consecutive session, our markets opened on an optimistic note. The liquidity fuelled rally continued to boost prices albeit a small correction from the days highs. We are now observing a Japanese candlestick pattern which resembles a Hanging Man. The said pattern has a bearish implication but needs a confirmation in the form of closing below the low of the Hanging Man, which is 17595 / 5327 level. In this scenario, indices may slide towards 17504 17308 / 5290 5225 levels. On the upside, 17830 17908 / 5390 5400 may act as a strong resistance zone for the markets.

Actionable points:
View Expected Targets Resistance levels Bearish below 5327 5290 5225 5390 5400

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Technical Research | February 07, 2012

Bank Nifty Outlook - (10269)

As stated in our previous report, yesterday Bank Nifty opened with an upside gap and traded in a mentioned zone of 10170 10350 throughout the day. Now, on the Daily chart, we are witnessing a possibility of negative divergence in RSI oscillator which is coupled with other overbought momentum oscillators. Hence a chance of minor correction cannot be ruled out. On the downside, only if Bank Nifty trades convincingly below yesterdays low of 10183 then it can drift towards 10000 9928 levels. However, on the upside resistance of 10350 is likely to remain intact for the day.

Exhibit 2: Bank Nifty Daily Chart

Actionable points:
View
Resistance Levels Support Levels Neutral

10350 10516 10183 10000 9928

Source: Falcon

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Technical Research | February 07, 2012

Positive Bias:
Expected Target 86

Stock Name Escorts

CMP 81.6

5 Day EMA 80.2

20 Day EMA 77.6

Remarks View will change below 76.5

Negative Bias:
Expected Target 435

Stock Name Tata Steel

CMP 467.25

5 Day EMA 464.6

20 Day EMA 435

Remarks View will change above 480

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Technical Research | February 07, 2012

Daily Pivot Levels for Nifty 50 Stocks

SCRIPS SENSEX NIFTY BANKNIFTY ACC AMBUJACEM AXISBANK BAJAJ-AUTO BHARTIARTL BHEL BPCL CAIRN CIPLA COALINDIA DLF DRREDDY GAIL HCLTECH HDFC HDFCBANK HEROMOTOCO HINDALCO HINDUNILVR ICICIBANK IDFC INFY ITC JINDALSTEL JPASSOCIAT KOTAKBANK LT M&M MARUTI NTPC ONGC PNB POWERGRID RANBAXY RCOM RELIANCE RELINFRA RPOWER SAIL SBIN SESAGOA SIEMENS STER SUNPHARMA SUZLON TATAMOTORS TATAPOWER TATASTEEL TCS WIPRO S2 17,476 5,297 10,114 1,238 172 1,088 1,602 381 264 566 342 345 322 227 1,604 379 450 686 492 1,928 151 368 911 135 2,723 199 548 74 508 1,347 690 1,222 173 276 956 105 440 91 810 524 97 105 2,105 220 740 122 525 29 243 100 454 1,162 418 S1 17,592 5,329 10,191 1,286 176 1,099 1,621 385 268 570 349 349 325 231 1,625 384 456 693 500 1,945 153 377 919 137 2,750 201 561 76 514 1,366 700 1,237 175 280 965 107 445 93 822 536 99 106 2,134 225 760 124 536 29 247 104 461 1,178 422 PIVOT 17,711 5,360 10,261 1,320 179 1,109 1,634 389 270 575 355 352 329 236 1,660 390 462 699 508 1,969 155 394 928 139 2,779 202 571 78 519 1,382 712 1,251 177 282 973 108 453 95 836 553 101 107 2,161 230 772 125 551 30 250 109 469 1,189 427 R1 17,826 5,392 10,339 1,369 184 1,120 1,653 394 274 579 362 356 332 240 1,682 396 469 705 516 1,986 158 404 937 142 2,806 203 584 80 526 1,401 722 1,267 179 286 983 110 458 96 847 566 102 109 2,189 234 791 127 562 31 255 113 476 1,205 432 R2 17,945 5,422 10,409 1,403 186 1,129 1,666 398 277 584 367 359 336 245 1,717 402 475 711 524 2,010 160 420 946 144 2,835 205 594 82 531 1,417 734 1,281 181 289 991 111 466 99 861 582 104 110 2,216 240 803 129 576 31 257 118 484 1,216 437

Technical Research Team

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Technical Research |Technical07, 2012 February Report

RESEARCH TEAM
Shardul Kulkarni Sameet Chavan Sacchitanand Uttekar Mehul Kothari Ankur Lakhotia Head - Technicals Technical Analyst Technical Analyst Technical Analyst Technical Analyst

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