You are on page 1of 5

Technical Research | February 23, 2012

Daily Technical Report Sensex (18145) / NIFTY (5505)


Yesterday, once again indices opened on a flat note and moved higher during the first half the session. However, a sharp correction during the latter part of the day pulled indices significantly lower to close well within the negative territory. On the sectoral front, Realty, Consumer Durables and Metal counters tumbled sharply during yesterdays session, whereas IT sector ended marginally in the positive territory. The advance to decline ratio was strongly in favor of declining counters. (A=769 D=2208) (Source www.bseindia.com)

Exhibit 1: Nifty Daily Chart

Formation:
The daily chart depicts a Bearish Engulfing pattern. On the Weekly chart, indices have closed well above the Horizontal Resistance Line placed at 17908 / 5400 level. We are observing a negative crossover in momentum oscillators viz., the RSI and the Stochastic The RSI-Smoothened oscillator on the daily chart is still placed in extreme overbought territory.
Source: Falcon

Trading strategy:
After a quiet opening, indices stayed in a narrow range for most of the part of the day. However, significant selling pressure during the last hour of the session pulled indices near 5500 mark. We are now observing a Bearish Engulfing pattern on the daily chart coupled with the negative crossover in RSI & Stochastic oscillator. Hence, if indices sustain below 18043 / 5483 level then they are likely to drift towards 18000 - 17770 / 5460 - 5390 levels. On the upside, 18234 18293 / 5545 5561 levels may act as resistance in coming trading session. Traders are advised to trade with caution as the market may witness immense volatility in the latter half of todays session on account of derivative expiry of the February contracts.

Actionable points:
View Expected Targets Resistance levels Negative below 5483 5460 - 5390 5545 5561

For Private Circulation Only |

Technical Research | February 23, 2012

Bank Nifty Outlook - (10747)


Finally, yesterday we witnessed a much awaited correction of the continuous rally started from Jan 2012 and Bank Nifty ended with loss of approximately 4%. The fall was mainly led by State Bank of India, which closed almost 8% lower. As expected and mentioned in our previous reports, the fall was very sharp because of the overbought condition of RSI Smoothened oscillator and Bank Nifty tested the mentioned support of 10775 to close marginally below the same. Now, on the Daily chart, we are witnessing negative crossover in most of the momentum oscillators viz., RSI, Stochastic, RSI Smoothened coupled with an upward sloping trend line breakdown in hourly chart. Hence, if Bank Nifty sustains below yesterdays low of 10714 then the index may correct further till 10630 10340 levels. On the upside, 10810 10875 levels could act as resistance in coming trading session. Exhibit 2: Bank Nifty Daily Chart

Actionable points:
View Expected Target Resistance Levels Negative Below 10714 10630 10340 10810 10875
Source: Falcon

For Private Circulation Only |

Technical Research | February 23, 2012

Negative Bias:
Expected Target 1270 600

Stock Name Acc Techm

CMP 1325.3 632.4

5 Day EMA 1349 650.7

20 Day EMA 1301.7 644

Remarks View will change above 1360 View will change above 660

For Private Circulation Only |

Technical Research | February 23, 2012

Daily Pivot Levels for Nifty 50 Stocks


SCRIPS SENSEX NIFTY BANKNIFTY ACC AMBUJACEM AXISBANK BAJAJ-AUTO BHARTIARTL BHEL BPCL CAIRN CIPLA DLF DRREDDY GAIL HCLTECH HDFC HDFCBANK HEROMOTOCO HINDALCO HINDUNILVR ICICIBANK IDFC INFY ITC JINDALSTEL JPASSOCIAT KOTAKBANK LT M&M MARUTI NTPC ONGC PNB POWERGRID RANBAXY RCOM RELCAPITAL RELIANCE RELINFRA RPOWER SAIL SBIN SESAGOA SIEMENS STER SUNPHARMA SUZLON TATAMOTORS TATAPOWER TATASTEEL TCS WIPRO S2 17,827 5,404 10,383 1,282 158 1,148 1,757 328 284 596 371 311 314 220 1,626 365 478 686 520 2,084 140 372 928 137 2,862 205 583 75 552 1,383 718 1,257 177 280 973 108 423 86 813 581 115 101 2,088 219 780 110 539 25 260 105 450 1,212 434 S1 17,986 5,454 10,565 1,304 161 1,182 1,780 338 295 610 379 315 318 229 1,636 370 485 694 526 2,112 144 375 943 141 2,907 207 598 78 560 1,403 730 1,282 180 286 1,000 109 431 92 823 598 119 104 2,172 228 794 115 544 27 264 108 460 1,232 438 PIVOT 18,255 5,542 10,896 1,337 167 1,238 1,810 350 312 624 390 320 324 245 1,651 377 492 707 532 2,155 151 379 966 147 2,950 208 624 82 571 1,434 748 1,306 184 295 1,045 111 442 101 840 625 125 108 2,320 243 814 123 549 29 270 113 478 1,249 445 R1 18,414 5,593 11,078 1,359 171 1,272 1,833 360 323 638 397 323 329 254 1,661 382 499 715 538 2,183 155 383 981 151 2,996 210 638 84 579 1,454 761 1,330 187 302 1,072 112 449 107 851 641 129 111 2,404 252 829 128 554 31 274 116 489 1,270 449 R2 18,683 5,681 11,409 1,393 177 1,327 1,863 372 339 653 408 328 335 270 1,676 390 505 728 545 2,226 162 387 1,005 158 3,039 211 664 88 590 1,484 779 1,354 190 311 1,117 114 460 116 868 668 136 116 2,553 267 849 137 558 34 280 121 507 1,287 456

Technical Research Team


For Private Circulation Only |

Technical Research |Technical23, 2012 February Report

RESEARCH TEAM
Shardul Kulkarni Sameet Chavan Sacchitanand Uttekar Mehul Kothari Ankur Lakhotia Head - Technicals Technical Analyst Technical Analyst Technical Analyst Technical Analyst

For any Queries, Suggestions and Feedback kindly mail to sameet.chavan@angelbroking.com Research Team: 022-3952 6600 Website: www.angelbroking.com

DISCLAIMER: This document is not for public distribution and has been furnished to you solely for your information and must not
be reproduced or redistributed to any other person. Persons into whose possession this document may come are required to observe these restrictions. Opinion expressed is our current opinion as of the date appearing on this material only. While we endeavor to update on a reasonable basis the information discussed in this material, there may be regulatory, compliance, or other reasons that prevent us from doing so. Prospective investors and others are cautioned that any forward-looking statements are not predictions and may be subject to change without notice. Our proprietary trading and investment businesses may make investment decisions that are inconsistent with the recommendations expressed herein. The information in this document has been printed on the basis of publicly available information, internal data and other reliable sources believed to be true and are for general guidance only. While every effort is made to ensure the accuracy and completeness of information contained, the company takes no guarantee and assumes no liability for any errors or omissions of the information. No one can use the information as the basis for any claim, demand or cause of action. Recipients of this material should rely on their own investigations and take their own professional advice. Each recipient of this document should make such investigations as it deems necessary to arrive at an independent evaluation of an investment in the securities of companies referred to in this document (including the merits and risks involved), and should consult their own advisors to determine the merits and risks of such an investment. Price and value of the investments referred to in this material may go up or down. Past performance is not a guide for future performance. Certain transactions - futures, options and other derivatives as well as non-investment grade securities - involve substantial risks and are not suitable for all investors. Reports based on technical analysis centers on studying charts of a stock's price movement and trading volume, as opposed to focusing on a company's fundamentals and as such, may not match with a report on a company's fundamentals. We do not undertake to advise you as to any change of our views expressed in this document. While we would endeavor to update the information herein on a reasonable basis, Angel Broking, its subsidiaries and associated companies, their directors and employees are under no obligation to update or keep the information current. Also there may be regulatory, compliance, or other reasons that may prevent Angel Broking and affiliates from doing so. Prospective investors and others are cautioned that any forward-looking statements are not predictions and may be subject to change without notice. Angel Broking Limited and affiliates, including the analyst who has issued this report, may, on the date of this report, and from time to time, have long or short positions in, and buy or sell the securities of the companies mentioned herein or engage in any other transaction involving such securities and earn brokerage or compensation or act as advisor or have other potential conflict of interest with respect to company/ies mentioned herein or inconsistent with any recommendation and related information and opinions. Angel Broking Limited and affiliates may seek to provide or have engaged in providing corporate finance, investment banking or other advisory services in a merger or specific transaction to the companies referred to in this report, as on the date of this report or in the past.

Sebi Registration No : INB 010996539

For Private Circulation Only |