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Daily Technical Report

August 20, 2013

Sensex (18308) / NIFTY (5415)


The opening session of the week started off on a pessimistic note and immediately dropped by more than a percent during the opening tick. This momentum continued for most part of the session and in the process, Nifty posted a low of 5360, two percent lower than previous days closing. However, we witnessed modest recovery towards the fag end of the session and hence, Nifty trimmed some of its losses but closed well inside the negative territory. The Banking, Auto, Healthcare and FMCG counters remained under strong selling pressure; whereas the Metal and IT sectors managed to close in the positive territory. The Advance to Decline ratio was strongly in favor of declining counters. (A=829 D=1458) (Source www.bseindia.com )

Exhibit 1: Nifty Daily Chart

Formation
The 89-day EMA and the 89-week EMA are placed at 19346/ 5850 and 18073 / 5441 levels, respectively. The 20-day EMA and the 20-week EMA are placed at Source: Falcon: 18862 / 5588 and 19011 / 5661, respectively. The monthly RSI-Smoothened oscillator is signaling a negative crossover.

Actionable points:
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.
View Support Levels Resistance Levels Neutral 5360 5300 5450 5500

Trading strategy: The bears are in no mood to show any mercy. The Nifty has shed more than 6% in merely two trading sessions and thats a significant degree of price erosion in a very short span of time. In our previous report, we had mentioned about a crucial support of 5477, which has now been violated with an ease. As expected, indices then fell lower and precisely met with our target of 5380. This level coincides with the 50% Fibonacci retracement level of the rise from 4531 (low of December 2011 candle) to 6230 (high of May 2013 candle). Considering steep downfall in two sessions and oversold condition of intraday oscillators, the possibility of some bounce cannot be ruled out. In this case, we may expect a bounce towards 5450 5500 levels. However, the overall Lower Top Lower Bottom formation in weekly chart should not be neglected. Unfortunately, any sustainable move below yesterdays low 5360 may pull the index lower to test 5300 5280 levels.

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Daily Technical Report


August 20, 2013

Bank Nifty Outlook - (9451)


Yesterday, the Bank nifty too opened lower in-line with our benchmark index and collapsed for yet another session on the back of immense selling pressure in some of the heavyweight constituents. The index extended its down move after breaking Friday's low of 9420 and has attained our mentioned target of 9110. At this juncture, we are observing that the index is hovering marginally above the 8975 level, which is the 78.6% Fibonacci Retracement of the rise from 7766 (low of the weekly candle of 23 Dec 2011) to 13414 (high of the weekly candle of 24 May 2013). Considering current strong pessimism, the possibility of testing this support level is quite high. However, looking at the extreme oversold position of momentum oscillators, the possibility of near term bounce back towards 9280 -9425 levels cannot be ruled out. Volatility is likely to increase further and traders are advised to refrain from trading in the Bank Nifty as sharp moves on either side may be seen.

Exhibit 2: Bank Nifty Weekly Chart

Actionable points:

Source: Falcon:

View Support Levels Resistance Levels

Neutral 9087 8975 9280 9425

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Daily Technical Report


August 20, 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 17,896 5,286 8,881 1,089 155 386 940 1,672 417 293 98 269 292 380 247 134 2,098 289 2,265 905 701 563 1,790 89 573 777 94 321 2,918 303 191 27 600 684 736 755 1,278 103 132 241 463 93 367 794 308 1,493 120 491 291 72 215 1,729 1,605 S1 18,102 5,350 9,013 1,107 160 407 964 1,718 434 305 101 279 298 390 252 142 2,119 294 2,296 918 718 574 1,855 92 581 796 98 330 2,962 309 205 29 610 711 765 783 1,293 107 134 251 471 95 374 807 321 1,512 125 506 296 73 231 1,753 1,630 PIVOT 18,345 5,425 9,219 1,126 167 419 1,002 1,776 454 320 103 286 303 405 255 146 2,154 300 2,321 928 729 581 1,921 94 592 829 102 344 2,994 315 213 30 623 735 796 814 1,315 110 137 262 482 96 384 821 328 1,540 131 526 303 75 240 1,780 1,662 R1 18,550 5,489 9,351 1,144 172 439 1,026 1,821 471 332 106 295 309 415 261 154 2,175 305 2,352 941 747 592 1,987 98 600 848 105 354 3,038 321 227 32 633 762 825 841 1,330 113 140 273 490 98 390 834 341 1,559 136 541 308 76 256 1,804 1,687 R2 18,793 5,564 9,558 1,164 179 451 1,064 1,880 492 347 109 302 315 430 264 158 2,210 310 2,377 951 758 600 2,052 100 611 881 109 368 3,070 327 236 33 646 786 857 873 1,352 117 143 283 500 99 400 847 348 1,587 141 561 314 77 265 1,831 1,719

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Daily Technical Report


August 20, 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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