Daily Technical Report

September 20, 2012

Sensex (18496) / NIFTY (5600)
On Tuesday our markets opened quietly in-line with other Asian bourses and traded in a narrow range throughout the session to close exactly at the 5600 mark. On sectoral front we witnessed a sharp rally in Banking counters (especially the beaten down mid-cap PSU banks), Consumer Goods and Power counters; whereas Oil & Gas, IT and Healthcare sectors corrected on Tuesday’s session. The advance to decline ratio was strongly in favor of advancing counters (A=1692 D=1197) (Source –www.bseindia.com).

Exhibit 1: Nifty Daily Chart

Formation
 The ’20-day EMA’ and the ’20-week EMA’ are placed at 17763 / 5361 and 17380 / 5261 levels, respectively. Indices have now confirmed a weekly ‘Higher Top Higher Bottom’ formation. The daily ‘RSI’ momentum oscillator on weekly chart is still showing strength. The weekly chart depicts an “Upward Sloping Trend Line” breakout above 17973 / 5449 level. The ADX (14) indicator on the Daily chart shows possibility of further strength in the coming sessions. The + DI (positive directional index) is moving upwards supported by the ADX line, which has now moved up to 26.14 level. The ADX rise from 15 to 25 indicates that the uptrend is strengthening and positive momentum is likely to accelerate further in the coming trading sessions.
Source: Falcon:

Actionable points:
View Resistance Levels Support Levels Neutral 5653 – 5702 5585 - 5550

Trading strategy:
After a strong rally, it is normal for the markets to show some signs of consolidation. In line with expectations, the daily chart now depicts a "Narrow Range" body formation, which indicates that the bulls are taking a breather. Going forward if our indices sustain below Tuesday's low of 18469 / 5586, then we may witness a further correction towards the next support level of 18380 / 5550. However, the continuous rise in the daily ADX (14) indicator (moved up from 23.60 to 26.14) signifies that the current up trend will strengthen further as time passes. Hence, we continue to maintain our positive stance on the market and expect indices to move towards their higher targets of 18945 – 19132 / 5702 – 5741 levels over the next few sessions. Traders are advised to adopt a buy on dips strategy and have a stock specific approach with strict stop losses on trading positions.

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Daily Technical Report
September 20, 2012

Bank Nifty Outlook - (11044)
On Tuesday, Bank Nifty opened on a flat note and traded in a narrow range throughout the session to close with a nominal gain of 0.56%. While the overall index remained flat for the day, individual stocks in the PSU midcap banking space rallied significantly. The “Negative Divergence” in “RSI” momentum oscillator on the hourly chart mentioned in our previous report is still intact. In addition the “Stochastic” momentum oscillator on the daily chart continues to be in overbought condition. As there is no major change in the chart structure we reiterate our view that a minor pull back or consolidation in the index cannot be ruled out. Thus on the downside 10962 – 10867 are likely to act as support and 11065 – 11141 are likely to act as resistance in coming trading session.

Exhibit 2: Bank Nifty Daily Chart

Actionable points:
View Resistance Levels Support Levels Neutral 11065 – 11141 10816 - 10711 Source: Falcon:

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Daily Technical Report
September 20, 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 18,404 5,568 10,868 1,350 188 3,846 1,030 1,725 716 263 209 330 340 357 366 222 1,646 372 3,051 557 747 599 1,878 112 523 1,034 144 2,558 248 382 74 580 1,522 781 1,254 162 277 726 115 515 838 503 85 2,026 172 670 100 657 269 96 401 1,260 358 S1 18,450 5,584 10,956 1,359 190 3,873 1,052 1,737 731 266 217 334 345 361 371 224 1,661 380 3,080 566 761 602 1,904 113 528 1,042 146 2,580 251 394 77 590 1,538 790 1,265 164 279 765 117 521 847 508 87 2,088 174 677 101 665 271 97 403 1,280 364 PIVOT 18,515 5,602 11,010 1,370 192 3,899 1,069 1,746 740 268 222 339 354 368 375 228 1,675 385 3,110 571 770 607 1,924 115 533 1,049 149 2,599 255 401 79 600 1,550 798 1,279 167 281 786 118 527 860 513 88 2,122 176 682 102 675 275 99 406 1,312 374 R1 18,561 5,618 11,098 1,380 194 3,926 1,090 1,758 755 271 229 342 359 371 380 230 1,690 392 3,140 579 784 610 1,950 116 537 1,056 151 2,621 258 413 82 610 1,566 807 1,290 170 283 824 119 533 869 518 90 2,184 178 689 104 683 277 100 409 1,332 380 R2 18,626 5,636 11,153 1,391 196 3,952 1,107 1,767 764 274 234 347 368 378 384 234 1,704 397 3,169 584 792 615 1,970 117 543 1,063 154 2,640 261 420 84 621 1,578 816 1,303 173 285 846 121 540 883 523 91 2,219 181 694 105 692 281 101 412 1,365 391

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Daily Technical Report
September 20, 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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