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Technical Report 18th October 2011

The daily technical report provides an analysis of the Sensex, Nifty, and other Indian stock indexes and equities. It found that indexes opened higher but failed to sustain gains and closed marginally lower. Several sectors declined while autos and consumer durables rose. Technical indicators show resistance levels for the indexes around 17,260/5,198. Bank Nifty is seen as indecisive around current levels. Specific stock recommendations are given, including selling Tata Steel based on resistance levels.

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174 views

Technical Report 18th October 2011

The daily technical report provides an analysis of the Sensex, Nifty, and other Indian stock indexes and equities. It found that indexes opened higher but failed to sustain gains and closed marginally lower. Several sectors declined while autos and consumer durables rose. Technical indicators show resistance levels for the indexes around 17,260/5,198. Bank Nifty is seen as indecisive around current levels. Specific stock recommendations are given, including selling Tata Steel based on resistance levels.

Uploaded by

Angel Broking
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as PDF, TXT or read online on Scribd
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Technical Research | October 18, 2011

Daily Technical Report


Sensex (17025) / NIFTY (5118)
Yesterday we witnessed a gap-up opening in-line with positive global cues. However, indices failed to sustain at higher levels and selling pressure dragged indices to close marginally below Fridays closing. On the sector front, Oil & Gas, Capital Goods and Power were among the major losers whereas Auto and Consumer Durables ended on a gaining side. The advance decline ratio was marginally in favor of declining counters (A=1320 D=1432). (Source
www.bseindia.com)

Exhibit 1: Nifty Daily Chart

Formation
We are observing a positive crossover in Weekly RSI Smoothened momentum oscillator. On the Daily as well as Weekly chart, there is a

Horizontal Trend Line resistance at 17256 / 5198 level. The 20 EMA on the Weekly chart is placed at 17260 /
Source: Falcon

5177 level.

Actionable points: Trading strategy:


Markets opened on an optimistic note but failed to sustain at higher levels as they were nearing strong resistance zone of 17260 / 5198 level. Thus, indices corrected to test hourly 20 EMA which was placed around 16950 / 5085 level. Going forward, we reiterate that until and unless indices move beyond the 17260 / 5198 level, every attempt to scale this mark would attract strong selling pressure. On the downside, yesterdays low of 16928 / 5084 level may act as a support in coming trading session. A violation of this level may reinforce selling pressure which can drag indices lower to test 16316 16510 / 5034 4964 levels. View Negative below Expected Target Resistance Level Bearish 5084 5000 - 4964 5160 - 5198

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Technical Research | October 18, 2011

Bank Nifty Outlook - (9721)


Bank Nifty has managed to give a close above mentioned resistance level of 9685 and has negated bearish implication of Bearish Doji Star on daily chart. However, we are again witnessing formation of Doji candle pattern. This is a sign of indecisiveness prevailing at current levels. If Bank Nifty sustains above yesterdays high of 9788, then it is likely to rally towards 9970 level, which is a prior swing high. On the downside, 9550 9400 level may act as support levels for the day.

Exhibit 2: Bank Nifty Daily Chart

Actionable points:

View Support Level Resistance Level

Neutral 9550 9400 9788 9970


Source: Falcon

Stock Recommendations:
Stock Tata Steel (Oct Fut) Action Sell Last close ` 435.20

Exhibit 3: Tata Steel (Oct Fut) Daily chart

Selling Range ` 433-436 Stop Loss Target ` 442.5 ` 416

Justification On the Daily chart the stock is facing resistance at 61.8% Fibonacci retracement level of fall from ` 500 to ` 388 which is at ` 457. Also this level coincides with a gap area formed on 22nd Sept 2011.Further on hourly chart we are witnessing negative crossover in 5 & 20 EMA. Hence, we advise selling the stock in a range of ` 433-436 for a target of ` 416 in coming 4-6 trading sessions.

Source: Falcon

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Technical Research | October 18, 2011

Positive Bias: Stock Name CrompGreaves Exide Inds 5 Day EMA 162.3 135.1 20 Day EMA 156 134.4 Expected Target 179 142.4 Remarks View will change below 159 View will change below 132

Negative Bias:

Stock Name Reliance Capital Orchid Chem Infy

5 Day EMA 341.7 167.9 2685.4

20 Day EMA 357.7 171.2 2537.7

Expected Target 320 160 2600

Remarks View will change above 356 View will change above 174 View will change above 2765

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Technical Research | October 18, 2011

Daily Pivot Levels for Nifty 50 Stocks


SCRIPS SENSEX NIFTY BANKNIFTY ACC AMBUJACEM AXISBANK BAJAJ-AUTO BHARTIARTL BHEL BPCL CAIRN CIPLA 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 RELCAPITAL RELIANCE RELINFRA RPOWER SAIL SBIN SESAGOA SIEMENS STER SUNPHARMA SUZLON TATAMOTORS TATAPOWER TATASTEEL TCS WIPRO S2 16,787 5,045 9,603 1,092 146 1,096 1,611 372 317 611 285 281 229 1,484 402 426 659 469 1,946 127 328 880 119 2,699 202 508 70 460 1,348 802 987 164 265 954 96 487 74 320 807 408 84 102 1,853 214 809 118 458 37 179 98 429 1,086 348 S1 16,906 5,082 9,662 1,102 149 1,109 1,633 376 321 622 292 286 232 1,497 406 433 666 473 1,969 129 331 890 121 2,723 204 515 71 466 1,364 807 1,019 166 267 962 97 492 75 328 820 413 85 104 1,872 217 817 119 465 37 184 99 435 1,103 352 PIVOT 17,047 5,121 9,725 1,111 151 1,121 1,648 381 329 640 296 288 235 1,513 412 439 672 477 1,999 130 333 896 124 2,744 205 522 73 473 1,391 813 1,043 170 269 973 98 498 77 340 845 420 87 106 1,903 220 832 121 473 38 187 100 439 1,129 359 R1 17,166 5,157 9,784 1,121 155 1,134 1,669 386 334 650 303 292 239 1,526 416 446 679 482 2,022 132 336 906 126 2,768 207 529 74 479 1,408 819 1,075 172 272 981 99 504 78 349 858 425 88 108 1,922 223 841 122 480 38 192 101 445 1,146 364 R2 17,308 5,197 9,847 1,131 157 1,146 1,684 391 341 668 307 295 242 1,542 422 452 685 485 2,051 133 338 912 128 2,789 208 536 75 486 1,435 825 1,098 175 274 992 100 510 80 361 882 432 90 110 1,952 226 856 124 487 39 196 102 449 1,171 371

Technical Research Team


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Technical ResearchTechnical18, 2011 | October Report

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

For any Queries, Suggestions and Feedback kindly mail to [email protected] Research Team: 022-3952 6600 Website: www.angelbroking.com

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