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Daily Technical Report

August 31, 2012

Sensex (17542) / NIFTY (5315)


Yesterday, markets opened with a marginal downside gap and Indices then consolidated sideways for the major part of the day. However, we witnessed immense volatility during the last hour on account of the August month Derivative expiry. As a result, indices bounced back sharply and managed to close marginally above 5300 mark. During yesterdays session, Health Care, IT and Realty stocks closed in the positive territory; whereas Metal, Oil & Gas and Auto counters continued to trade with a negative bias. The advance to decline ratio was marginally in favor of advancing counters (A=1401 D=1329) (Source www.bseindia.com). Formation On the weekly chart, the indices have closed above the Downward Sloping Trend Line resistance around 17650/ 5370 formed by joining the highs of 21109 / 6339 (November 5, 2010) 18524 / 5630 (February 24, 2012). The 20-day EMA and the 200-day SMA are placed at 17572 / 5327 and 16900 / 5110 levels, respectively. Looking at the Line Chart it is clear that indices have now confirmed the Higher Top - Higher Bottom formation on the weekly chart after August 28, 2009. The weekly chart candle resembles a Shooting Star pattern. The daily chart candle resembles a "Piercing line" candlestick pattern.

Exhibit 1: Nifty Daily Chart

Source: Falcon

Actionable points:

View Resistance Levels Support Levels

Neutral 5343 5371 5255

Trading strategy: Finally, after four consecutive sessions, our markets managed to bounce and close in the positive territory. Extreme oversold condition of momentum oscillators and the derivative expiry helped the markets to show some strength in the near term. We are now observing that indices have marginally closed below 20-day EMA. Also the "Piercing line" candlestick pattern on the daily chart indicates that the fall may get arrested at least for a couple of sessions.

Going forward, if indices manage to sustain above yesterdays high of 17605 / 5343, then indices are likely to bounce towards 17798 17820 / 5371 5400 levels. On the downside, yesterdays low of 17367 / 5255 would act as a key support in coming trading session. A close below the low would negate the candlestick reversal pattern and result in a further fall.

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Daily Technical Report


August 31, 2012

Bank Nifty Outlook - (10085)


Yesterday, Bank Nifty also opened gap down and traded in a narrow range almost throughout the day. In line with our benchmark indices, Bank Nifty bounced sharply during the last hour of the session. Going forward, a sustainable move above yesterdays high of 10131 may attract some buying interest among participants. As a result, it may bounce higher to test next resistance levels of 10230 10318 in coming trading session. Conversely, yesterdays low of 9959 would act as a crucial support level for the coming trading session. Actionable points:

Exhibit 2: Bank Nifty Daily Chart

View Resistance Levels Support Levels

Neutral 13131 10230 10318 9959 Source: Falcon

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Daily Technical Report


August 31, 2012 Daily Pivot Levels for Nifty 50 Stocks
SCRIPS SENSEX NIFTY BANKNIFTY ACC AMBUJACEM ASIANPAINT AXISBANK BAJAJ-AUTO BANKBARODA BHARTIARTL BHEL BPCL CAIRN CIPLA COALINDIA DLF DRREDDY GAIL GRASIM HCLTECH HDFC HDFCBANK HEROMOTOCO HINDALCO HINDUNILVR ICICIBANK IDFC INFY ITC JINDALSTEL JPASSOCIAT KOTAKBANK LT M&M MARUTI NTPC ONGC PNB POWERGRID RANBAXY RELIANCE RELINFRA SAIL SBIN SESAGOA SIEMENS STER SUNPHARMA TATAMOTORS TATAPOWER TATASTEEL TCS WIPRO S2 17,267 5,217 9,887 1,302 181 3,561 992 1,589 600 236 209 339 333 362 352 184 1,653 348 2,908 533 683 579 1,749 100 501 885 131 2,354 263 343 59 565 1,301 755 1,116 167 270 650 116 542 758 443 75 1,802 165 657 95 664 226 96 359 1,294 359 S1 17,404 5,266 9,986 1,314 185 3,629 1,002 1,610 618 240 214 343 338 367 357 191 1,674 352 2,942 540 705 587 1,786 103 515 902 135 2,373 267 348 62 579 1,328 763 1,130 169 273 665 119 546 771 447 76 1,821 169 671 97 668 231 98 362 1,331 364 PIVOT 17,505 5,304 10,058 1,326 189 3,718 1,015 1,630 629 242 219 350 341 371 361 196 1,688 358 2,981 547 721 595 1,831 105 533 923 137 2,390 270 354 64 589 1,351 773 1,147 171 276 674 121 550 781 451 78 1,834 172 680 98 674 235 100 368 1,360 367 R1 17,642 5,354 10,158 1,339 193 3,785 1,026 1,651 647 245 224 355 346 376 365 203 1,710 363 3,015 554 743 603 1,868 108 547 940 141 2,409 274 359 68 603 1,378 782 1,161 173 279 689 124 554 794 455 80 1,853 176 693 100 678 241 101 372 1,396 372 R2 17,743 5,392 10,230 1,351 197 3,874 1,038 1,671 658 247 228 362 350 380 370 207 1,724 369 3,054 561 759 611 1,912 110 565 960 144 2,426 277 365 70 614 1,402 791 1,178 175 282 698 126 558 805 460 81 1,866 179 703 102 684 245 103 377 1,425 375

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Daily Technical Report


August 31, 2012
Research Team Tel: 022 - 39357800 E-mail: research@angelbroking.com Website: www.angelbroking.com

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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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