Technical Research | October 10, 2011

Daily Technical Report

Sensex (16233) / NIFTY (4888)
Markets opened with a huge gap up on Friday mainly on account of positive global cues and traded in a narrow range during the first half of the session, however during the second half volatility increased and indices managed to close near the initial opening level. On the sector front, gains were seen in all the sectors. Metals, Banking, Realty, Consumer Goods and Oil & Gas were the major gainers which pulled the indices higher. The advance decline ratio was strongly in favor of advancing counters (A=1802 D=984). (Source www.bseindia.com)

Exhibit 1: Sensex Daily Chart

Formation
The Weekly chart depicts a Japanese candlestick pattern which resembles a Dragonfly Doji. The Daily RSI momentum oscillator has given a

positive crossover. The 20 EMA on Daily chart is now placed at 16430 /

Source: Falcon

4940 level. On the Daily chart, we are observing a Downward

sloping trend line around 16430 / 4940 level.

Trading strategy:
Last week, Indices moved in a trading range and made a couple of attempts to break crucial support level of 15765 / 4720. However, indices failed to break this level on closing basis and registered a weekly close significantly higher from their lows. Thus, we are now observing a Japanese candlestick pattern which resembles a Dragonfly Doji at crucial support level. The said pattern will be confirmed ONLY above last weeks high of 16348 / 4923. In addition, the RSI momentum oscillator has given a positive crossover in daily chart. However, a combination of the 20 EMA and Downward sloping trend line indicates immediate resistance at 16430 / 4940 level. Therefore, looking at the above technical evidences, if indices manage to sustain above 16430 / 4940 level then they are likely to rally towards the downside gap area of 16800 17000 / 5050 5010 created on 22nd September 2011. On the downside, 16045 15745 / 4828 4720 levels would act as support levels in coming trading session. We reiterate that the selling pressure may intensify only if indices manage to break and close below 15745 / 4720 level. In such scenario, they are likely to drift towards 15650 15330 / 4675 4540 levels.

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Technical Research | October 10, 2011

Bank Nifty Outlook - (9038)

During last week, in the daily chart of Bank Nifty we witnessed a trend line breakdown near the level of 9180. However, we are also witnessing positive divergence in the RSI momentum oscillator. On Fridays trading session indices have opened and sustained above Wednesdays high leading to a bear trap situation. Thus, going forward, we expect that if Bank Nifty sustains above 9120 level then it is likely to test the downward gap area of 9333 to 9420. On the downside, 8870 - 8810 levels may act as support in the coming trading sessions.

Exhibit 2: Bank Nifty Daily Chart

Source: Falcon

Stock Recommendations:
Stock SesaGoa Action - Buy Range : ` 205-201

Exhibit 3: Sesa Goa Daily chart

Stop Loss : ` 196.25 Target : ` 218

Justification On Weekly chart, the stock has formed Bullish Hammer Japanese candle stick pattern in the previous week. This reversal pattern along with rise in volumes near the down ward sloping trend line support, indicates probability of a bounce. The said pattern will be confirmed only above the high of the hammer which is at Rs. 206. Positive crossover in RSI- Smoothened oscillator on the daily chart indicates strength and increases the likelihood of a temporary reversal in trend. Therefore, we advise buying the stock in a range of Rs.205 to Rs.201 for a target of Rs.218 in coming 2 - 3 weeks.
Source: Falcon

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Technical Research | October 10, 2011

Daily Pivot Levels for Nifty 50 Stocks

SCRIPS SENSEX NIFTY ABB ACC AMBUJACEM AXISBANK BHARTIARTL BHEL BPCL CAIRN CIPLA DLF GAIL HCLTECH HDFC HDFCBANK HEROHONDA HINDALCO HINDUNILVR ICICIBANK IDEA IDFC INFY ITC JINDALSTEL JPASSOCIAT KOTAKBANK LT M&M MARUTI NTPC ONGC PNB POWERGRID RANBAXY RCOM RELCAPITAL RELIANCE RELINFRA RPOWER SAIL SBIN SIEMENS STER SUNPHARMA SUZLON TATAMOTORS TATAPOWER TATASTEEL TCS UNITECH WIPRO S2 16,045 4,829 1,089 140 954 1,461 332 314 661 261 279 210 1,478 403 394 627 438 1,863 122 322 807 110 2,437 192 444 70 434 1,365 784 1,083 163 254 897 95 505 71 315 776 379 79 100 1,722 197 821 109 452 35 150 94 407 1,014 321 S1 16,139 4,859 1,101 142 992 1,482 343 320 665 266 282 214 1,490 407 400 636 444 1,902 124 326 816 113 2,473 195 463 72 440 1,379 790 1,098 165 259 911 96 511 72 318 789 385 80 102 1,737 201 829 111 461 35 155 96 413 1,031 328 PIVOT 16,243 4,891 1,115 147 1,015 1,510 360 323 670 273 286 217 1,508 413 408 646 452 1,951 126 329 824 116 2,524 198 477 74 448 1,389 797 1,112 167 265 928 98 521 73 323 799 390 81 103 1,758 204 843 113 469 36 158 100 417 1,055 336 R1 16,337 4,920 1,127 150 1,053 1,531 371 329 674 277 289 221 1,520 417 414 655 458 1,990 127 332 832 119 2,560 202 497 75 454 1,403 804 1,127 169 271 942 99 527 75 327 812 396 82 105 1,773 208 851 115 478 37 162 102 424 1,072 343 R2 16,441 4,952 1,141 155 1,077 1,560 387 332 679 284 293 225 1,538 423 422 665 466 2,039 129 335 840 121 2,611 204 511 77 462 1,412 811 1,140 171 277 958 100 537 76 331 822 402 83 106 1,793 210 865 116 487 37 165 106 428 1,095 351

Technical Research Team

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Technical ResearchTechnical10, 2011 | October Report

RESEARCH TEAM
Shardul Kulkarni Mileen Vasudeo Sameet Chavan Sacchitanand Uttekar Mehul Kothari Head - Technicals Technical Analyst Technical Analyst Technical Analyst Technical Analyst

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