Technical Research | August 29, 2011

Daily Technical Report

Sensex (15849) / Nifty (4749)
Markets opened on a quite note and failed to sustain at higher levels as selling pressure dragged indices below recent low of 15987 / 4796. On the sector front, Realty, Metal and Oil & Gas counters were among the major losers. The advance decline ratio was in favor of declining counters (A=637 D=2221). (Source www.bseindia.com).

Exhibit 1: Sensex Daily Chart

Formation
We are still observing that the ADX (14) line for Sensex / Nifty continues to rise from the last weeks level of 23.15 / 22.85 to the current weeks level of 25.23 / 24,97 along with DI (Negative Directional Index) moving upwards. The momentum oscillator viz. the RSI
Source: Falcon

Smoothened on the Daily chart is placed well in the oversold territory.

Trading strategy:
In the last week, we witnessed a sluggish movement till Thursdays session but indices failed to hold recent low of 15987 / 4796 on Friday's session due to immense selling pressure and registered a weekly close below 16000 / 4800 mark. The strength in the ADX (14) indicator continues to increase and we reiterate our view that a rising ADX on the weekly chart is a negative sign for the markets. However, on the Daily chart, RSI - Smoothened oscillator has entered an extreme oversold territory. This can be construed as markets are due for a minor bounce or consolidation in coming sessions. However, it is extremely difficult to predict from what level this bounce is likely to occur as the primary downtrend is gaining strength. Therefore, we advise traders to avoid creating fresh short positions as a logical risk reward ratio is highly unfavorable at this juncture. In case of a bounce, if indices sustain above 16256 / 4888 level then are likely to test 16550 16750 / 4966 - 5050. Going forward, indices may test 4675 - 4540 if they breach Fridays low of 16765 / 4720.

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Technical Research | August 29, 2011

Daily Pivot Levels For Nifty 50 Stocks

SCRIPS SENSEX NIFTY 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 15,466 4,628 989 128 971 1,469 385 1,709 675 255 274 177 1,422 405 354 605 429 1,806 138 316 812 103 2,100 200 443 56 410 1,502 681 1,088 167 275 898 97 441 76 378 739 429 80 101 1,916 212 851 121 457 34 697 1,024 429 919 321 S1 15,657 4,688 1,002 132 995 1,493 394 1,729 682 259 277 182 1,439 409 363 617 436 1,854 141 318 823 105 2,142 201 457 58 417 1,524 689 1,099 168 279 929 98 453 79 385 746 439 81 104 1,938 215 861 123 464 35 706 1,035 436 935 325 PIVOT 15,957 4,780 1,011 135 1,029 1,527 402 1,752 688 262 281 186 1,464 413 376 634 448 1,914 145 321 838 108 2,203 202 477 60 425 1,547 698 1,115 170 283 970 100 466 80 392 758 448 82 108 1,974 218 871 125 472 37 714 1,046 449 954 329 R1 16,148 4,840 1,023 139 1,054 1,551 410 1,772 695 266 284 190 1,481 417 385 645 455 1,962 147 324 849 110 2,245 204 491 62 432 1,569 707 1,126 171 287 1,001 102 477 83 399 765 458 84 110 1,996 221 881 127 479 38 722 1,057 456 970 332 R2 16,448 4,932 1,032 142 1,088 1,584 418 1,795 700 269 288 194 1,507 422 399 662 467 2,022 151 327 865 113 2,307 205 511 65 440 1,591 716 1,142 173 291 1,042 104 490 85 406 776 468 85 114 2,032 225 890 130 488 39 730 1,069 468 989 336

Technical Research Team

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Technical Research | August 29, 2011 Technical 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 mehul.kothari@angelbroking.com Research Team: 022-3935 7600 Website: www.angelbroking.com

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