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Daily Technical Report

August 19, 2013

Sensex (18598) / NIFTY (5508)


On Friday, our benchmark indices opened lower as indicated by the SGX Nifty. Right from the opening tick, we witnessed immense selling pressure in the market. As a result, the Nifty plunged by more than 4% during the session. All sectors remained under pressure and closed in negative territory. The decline was mainly led by Consumer Durables, Realty, Metal and Banking stocks. The Advance to Decline ratio was strongly in favor of declining counters. (A=711 D=1608) (Source www.bseindia.com )

Exhibit 1: Nifty Daily Chart

Formation
The 89-day EMA and the 89-week EMA are placed at 19384/ 5825and 18611 / 5620 levels, respectively. The 20-day EMA and the 20-week EMA are placed at 19240 / 5721 and 19319 / 5803, respectively. The monthly RSI-Smoothened oscillator is signaling a negative crossover. The weekly Lower Top - Lower Bottom formation in Nifty is still intact. The 50% and 61.8% Fibonacci retracement levels of the rise from 4531 (low of December 2011 candle) to 6230 (high of May 2013 candle) are placed at 5380 and 5180, respectively.
Source: Falcon:

Actionable points:

View Expected Target Resistance Levels Bearish below 5477 5380 5550 5590

Trading strategy: In-line with our expectation, we first witnessed a bounce towards 5720 5762 during the first half of the week. This weeks high of 5755 precisely coincides with the 20 Day EMA. This technical tool is considered as a strong resistance and during Fridays session, we witnessed immense selling pressure around 20 Day EMA. This eventually led to massive intraday fall of more than four percent for the first time after September 22, 2011. Every attempt by the bulls to recover from the lows got sold into and this single day fall overshadowed the entire bounce seen during the previous four trading sessions. At present, the monthly RSI-Smoothened oscillator is signaling a negative crossover. In addition, the weekly Lower Top Lower Bottom is still intact and indicates further weakness in the near term. Considering all these technical evidences, we are of the opinion that if Nifty stays below the crucial support level of 5477 then we are likely to see a further correction towards 5380 (50% Fibonacci retracement level) and even possibility of testing the 5180 (61.8% Fibonacci retracement level) level cannot be ruled out. We have been mentioning in our previous couple of reports that the overall structure remains negative and we advise positional traders with a 5 to 7 week perspective to adopt a Sell on Rise strategy.

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Daily Technical Report


August 19, 2013

Bank Nifty Outlook - (9451)


On Friday, the Bank nifty too opened with a downside gap in-line with our benchmark index and corrected significantly. Also the Bullish Engulfing candlestick pattern mentioned in the previous report is now negated. Going forward considering the current negative momentum, if the Bank Nifty sustains below 9420, then we may witness further selling pressure towards 9300/9110. On the flipside, 9580 -9832 levels would act as immediate resistance levels for Bank Nifty. At this juncture, the charts of individual Banking heavyweights such as SBI, ICICI, HDFC bank and AXIS bank do not warrant buying from a trading prospective. Traders are advised to stay light on position and trade with strict stop losses.

Exhibit 2: Bank Nifty Weekly Chart

Actionable points:
Source: Falcon:

View Expected targets Support Levels

Bearish Below 9420 9300- 9110 9580- 9832

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Daily Technical Report


August 19, 2013

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 INDUSINDBK INFY ITC JINDALSTEL JPASSOCIAT KOTAKBANK LT LUPIN M&M MARUTI NMDC NTPC ONGC PNB POWERGRID RANBAXY RELIANCE RELINFRA SBIN SESAGOA SUNPHARMA TATAMOTORS TATAPOWER TATASTEEL TCS ULTRACEMCO S2 18,072 5,353 9,116 1,128 167 400 994 1,770 445 322 96 277 290 404 249 136 2,112 278 2,231 888 700 561 1,894 89 581 830 102 331 2,923 305 200 27 606 729 785 803 1,272 103 134 256 467 94 359 787 301 1,518 122 525 304 69 221 1,714 1,579 S1 18,335 5,430 9,284 1,143 170 410 1,021 1,809 462 329 101 284 296 410 254 141 2,139 288 2,282 904 719 575 1,939 91 590 844 104 344 2,951 313 207 28 619 743 801 822 1,298 106 137 264 484 96 369 807 313 1,544 126 534 309 71 228 1,748 1,631 PIVOT 18,823 5,574 9,587 1,167 174 423 1,068 1,867 492 338 109 294 304 418 262 149 2,177 306 2,355 923 750 598 1,972 94 604 870 108 361 2,995 325 216 31 640 769 825 847 1,344 111 141 278 509 98 387 837 334 1,579 133 544 316 75 239 1,789 1,691 R1 19,086 5,651 9,755 1,182 177 432 1,095 1,906 509 345 114 301 309 423 267 153 2,204 316 2,406 939 768 612 2,018 97 613 885 110 374 3,023 333 223 32 653 783 841 866 1,370 114 143 285 525 100 397 857 346 1,605 137 553 321 77 246 1,822 1,743 R2 19,574 5,794 10,059 1,206 181 446 1,142 1,964 539 355 123 311 317 431 276 161 2,242 334 2,479 958 799 635 2,050 100 627 911 113 391 3,068 346 232 34 674 809 865 891 1,416 118 147 299 551 101 414 887 367 1,640 143 563 328 80 256 1,863 1,802

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Daily Technical Report


August 19, 2013
Research Team Tel: 022 - 30940000 E-mail: sameet.chavan@angelbroking.com Website: www.angelbroking.com

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Research Team
Shardul Kulkarni Sameet Chavan Sacchitanand Uttekar Head Technicals Technical Analyst Technical Analyst

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