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Daily Technical Report

October 31, 2012

Sensex (18431) / NIFTY (5598)
Yesterday, our benchmark indices opened on a flat note on the back of mixed global cues. Subsequently, we observed some volatility before the announcement of RBI Monetary policy. However, the outcome (RBI has trimmed the CRR by 25 bps and kept the Repo rate unchanged) from the policy aided the bears and as a result, indices corrected significantly in the session. Undoubtedly, yesterday’s fall was led by the Banking sector as many banking stocks collapsed during the day. The other major draggers were the Realty, Capital Goods and Consumer Durables counters. IT and Teck stocks managed to close marginally in the positive territory. The advance to decline ratio was strongly in favor of declining counters (A=997 D=1801) (Source – www.bseindia.com).

Exhibit 1: Nifty Daily Chart

Formation
 The ’20-day EMA’ and the ’20-week EMA’ are placed at 18650 / 5667 and 17986 / 5456 levels, respectively. The monthly ‘RSI’ oscillator is moving higher from the 50 mark and the positive in the ADX (9) indicator is intact. The negative crossover in the weekly ‘Stochastic’ oscillator is still intact. The 38.2% and 50% Fibonacci Retracement levels of the rise from 17250 to 19138 / 5216 to 5815 are placed at 18416 / 5586 and 18194 / 5515, respectively.
Source: Falcon:

Actionable points:
View for the day Expected targets Resistance levels Bearish below 5589 5550 - 5515 5635 - 5690

Trading strategy:
As expected, RBI Monetary policy set the direction for the market after a consolidation of 14 trading sessions. The prices have finally managed to come out of the narrow trading range. In the process, the hourly chart now depicts a breakdown from the ‘Channel’ pattern mentioned in our earlier reports. This is also supported by the negative crossover in daily ‘5 & 20 EMA’ and the ADX (9) indicator. All these technical evidences suggest short term pessimism in the market. Hence, going forward, if indices sustain below yesterday’s low of 18393 / 5589, then we may witness further correction in the market and indices then may slide towards 18194 / 5515, which is 50% Fibonacci Retracement levels of the rise from 17250 to 19138 / 5216 to 5815, respectively.

On the flipside, 18535 / 5633 level would now act as a strong intraday resistance for our market.

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Daily Technical Report
October 31, 2012

Bank Nifty Outlook - (11203)
Yesterday, Bank Nifty opened on a pessimistic note and dragged lower after the RBI monetary policy announcement to close with a loss of 2.35%. The impact of the negative crossover in “RSI - Smoothened” oscillator was seen once the index traded below the 11432 mark. The Bank Nifty has finally moved out of its range of 11745 – 11245. The momentum oscillators on the daily chart continue with their sell signals. However, looking at the oversold condition of momentum oscillators on the hourly chart some minor pullback or consolidation in the index cannot be ruled out during intraday trade. On the downside, if the index sustains below, yesterday’s low of 11174 then it is likely to drift towards 11070 – 11007 level. On the upside 11358 – 11415 levels are likely to act as resistance in coming trading session.

Exhibit 2: Bank Nifty Daily Chart

Actionable points:
View for the day Expected Targets Resistance Levels Bearish Below 11174 11070 – 11007 11358 - 11415 Source: Falcon:

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Daily Technical Report
October 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 LUPIN M&M MARUTI NTPC ONGC PNB POWERGRID RANBAXY RELIANCE RELINFRA SBIN SESAGOA SIEMENS SUNPHARMA TATAMOTORS TATAPOWER TATASTEEL TCS ULTRACEMCO WIPRO S2 18,189 5,526 10,899 1,346 198 3,829 1,131 1,777 677 265 218 333 332 350 342 192 1,683 349 3,223 595 737 622 1,788 108 539 1,000 153 2,311 281 365 82 586 1,592 557 848 1,302 164 268 697 111 515 792 461 1,979 163 669 677 237 103 385 1,295 1,982 339 S1 18,310 5,562 11,051 1,362 201 3,859 1,158 1,789 698 268 224 336 334 352 344 196 1,704 352 3,262 601 744 628 1,830 110 545 1,023 156 2,335 282 373 84 593 1,615 561 861 1,346 165 270 713 112 518 798 471 2,027 165 676 680 243 104 389 1,303 1,998 343 PIVOT 18,514 5,626 11,326 1,391 206 3,902 1,198 1,804 732 271 227 339 335 356 348 201 1,721 358 3,333 608 754 636 1,869 112 549 1,055 159 2,350 285 382 88 603 1,654 566 880 1,383 167 273 741 114 522 805 484 2,113 167 682 684 250 106 396 1,313 2,017 346 R1 18,635 5,662 11,477 1,408 208 3,931 1,225 1,817 752 274 233 342 337 358 350 204 1,742 361 3,372 614 761 642 1,912 113 555 1,077 163 2,374 287 390 90 609 1,678 570 893 1,427 168 275 757 115 525 810 495 2,161 169 689 687 255 107 400 1,321 2,032 351 R2 18,839 5,726 11,752 1,437 213 3,974 1,266 1,831 786 277 236 345 339 362 353 209 1,760 366 3,442 622 771 651 1,951 116 560 1,110 165 2,389 290 399 93 619 1,717 574 912 1,464 170 277 785 116 529 817 508 2,247 171 695 691 263 109 408 1,330 2,051 354

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Daily Technical Report
October 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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