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Technical Report 16th January 2012

The daily technical report provides an analysis of market indices in India. On Friday, markets opened higher but saw extreme volatility and closed near the opening level. Certain sectors such as metals and capital goods gained while consumer durables declined slightly. Technical indicators show the markets breaking out of resistance and trading above moving averages, suggesting further positive momentum if indices sustain above certain levels. Bank Nifty is range-bound and needs to rise above recent highs to target higher levels.

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198 views

Technical Report 16th January 2012

The daily technical report provides an analysis of market indices in India. On Friday, markets opened higher but saw extreme volatility and closed near the opening level. Certain sectors such as metals and capital goods gained while consumer durables declined slightly. Technical indicators show the markets breaking out of resistance and trading above moving averages, suggesting further positive momentum if indices sustain above certain levels. Bank Nifty is range-bound and needs to rise above recent highs to target higher 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 | January 16, 2012

Daily Technical Report Sensex (16155) / NIFTY (4866)


On Friday, markets opened higher in-line with global cues and traded with extreme volatility throughout the session. As a result, despite crossing 16286 / 4881 level, indices drifted during the latter part of the day and finally closed almost at the initial opening level. On the sectoral front, Metal, Capital Goods and Power sectors were among the major gainers, whereas Consumer Durables and Oil & Gas counters ended marginally on the losing side. The advance to decline ratio was strongly in favor of gaining counters. (A=1897 D=903) (Source www.bseindia.com)

Exhibit 1: Nifty Daily Chart

Formation:
The 20-day EMA (Exponential Moving Average) has now shifted to the 15940 / 4780 level. The positive crossover in weekly momentum oscillators,

viz. the RSI and the Stochastic, is still intact. On the Daily chart, we witnessed a Downward Sloping

Trend Line breakout from the resistance level of 16070 / 4820. The 61.8% Fibonacci retracement level of the fall from
Source: Falcon

17004 to 15135 / 5100 to 4531 is at 16290 / 4881.

Trading strategy:
After several attempts, markets finally managed to break out from the stiff resistance zone of 16070 / 4820, which also resulted in Downward Sloping Trend Line break out on the daily chart. Going forward, the bias remains positive as indices are trading convincingly above the 20 day EMA and have formed a Higher Top Higher Bottom formation on the daily chart. Further, looking at last 23 trading sessions, we have observed that indices are facing headwinds around the 61.8% Fibonacci retracement level of 16290 / 4881. Further, the positive crossover in weekly oscillators is still intact. Hence, the positive momentum may resume if indices sustain above the 16421 / 4920 level.

Actionable points:
View Expected Targets Support levels Positive Above 4920 4976 4834 4803

In this case, they are likely to head towards the next resistance levels of 16600 17004 / 4976 5100. On the downside, indices have a decent support near 15962 15940 / 4803 4780 levels. A move below 15940 / 4780 level may result in loss of positive momentum and then indices are likely to slide towards the 16000 / 4686 level.

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Technical Research | January 16, 2012

Bank Nifty Outlook - (8975)


On Friday, Bank Nifty opened on flat note and traded in a narrow range throughout the session to close near the initial opening level. The Daily chart depicts a Doji candlestick pattern, which indicates indecisiveness prevailing at current levels. The index has faced resistance near its 20 Week EMA which is placed at 9110. However, on the flip side, we are witnessing a positive crossover in RSI Smoothened oscillator on Weekly chart. Hence, any sustainable move above Fridays high of 9073 level would help Bank Nifty to test 9110 9275 levels. On the downside, low of the Doji (8913) would now act as a crucial support, below which we may witness a minor correction up to 8810 8750 levels.

Exhibit 2: Bank Nifty Daily Chart

Actionable points:
View Expected Target Support Levels
Positive Above 9073

9110 - 9275 8913 8810


Source: Falcon

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Technical Research | January 16, 2012

Positive Bias:
Expected Target 216 160

Stock Name ITC IRB

CMP 207.75 145.05

5 Day EMA 205.6 138.4

20 Day EMA 203.4 136.7

Remarks View will change below 200.5 View will change below 135

Negative Bias:
Expected Target 352 1360

Stock Name GAIL Bajaj-Auto

CMP 373.5 1430.8

5 Day EMA 379.8 1449

20 Day EMA 384.6 1510.6

Remarks View will change above 388 View will change above 1490

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Technical Research | January 16, 2012

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 15,946 4,802 8,828 1,106 149 914 1,379 324 261 498 324 331 188 1,624 362 389 659 456 1,753 128 388 764 104 2,518 203 480 58 455 1,115 674 952 159 255 875 100 444 80 273 714 393 80 90 1,752 179 699 99 501 20 203 93 378 1,057 385 S1 16,050 4,834 8,902 1,115 150 927 1,405 329 264 504 330 335 192 1,642 368 393 670 463 1,773 131 390 777 106 2,551 205 492 59 464 1,144 683 964 162 257 885 101 454 84 286 723 402 85 91 1,764 183 711 101 507 21 206 95 397 1,071 393 PIVOT 16,154 4,866 8,987 1,123 152 941 1,447 334 266 511 334 338 197 1,655 378 401 682 468 1,796 133 392 793 109 2,585 206 502 60 470 1,161 691 987 165 259 900 102 461 87 296 737 414 88 93 1,782 187 720 104 515 22 210 97 411 1,087 399 R1 16,258 4,899 9,061 1,132 153 954 1,473 339 269 516 340 342 201 1,673 384 405 694 475 1,816 136 394 806 111 2,618 208 513 61 479 1,190 700 1,000 168 261 910 103 471 90 309 746 423 93 94 1,794 191 732 106 521 23 213 98 430 1,102 407 R2 16,361 4,931 9,146 1,140 155 969 1,515 344 272 524 344 346 205 1,685 394 413 706 480 1,839 139 397 822 114 2,652 210 524 62 485 1,207 708 1,022 171 263 925 103 477 93 318 760 436 97 97 1,812 196 741 108 529 24 216 100 444 1,118 413

Technical Research Team


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Technical ResearchTechnical16, 2012 | January 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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