Daily Technical Report

October 15, 2012

Sensex (18675) / NIFTY (5676)

On Friday, Infosys declared numbers prior to market opening and Indices opened with a downward gap. All attempts by the bulls to construct a pullback eventually failed and selling pressure dragged the indices to close below the 5700 mark. The fall was mainly led by IT, Teck and Realty counters whereas; the defensive sectors like, Consumer Durables, Health Care and FMCG ended with very marginal gains. The advance to decline ratio was strongly in favor of declining counters (A=1369 D=1517) (Source www.bseindia.com).

Exhibit 1: Nifty Daily Chart

Formation
The 20-day EMA and the 20-week EMA are placed at 18582/ 5635 and 17840/ 5400 levels, respectively. The monthly RSI oscillator is moving higher from the 50 mark and the positive in ADX (9) indicator is intact. The weekly Stochastic oscillator is now signaling a negative crossover. The weekly chart candlestick pattern. depicts a Bearish Engulfing
Source: Falcon:

The 38.2% and 50% Fibonacci Retracement levels of the rise from 17250 to 19138 / 5216 to 5815 are placed at 18416 / 5586 and 18194 / 5515, respectively.

Actionable points:
View for the day Neutral 5697 - 5729 5635 - 5586

Trading strategy:
As mentioned in our earlier reports, our benchmark indices, the Sensex and the Nifty, are now undergoing a Time-Wise correction or in simple words, going through a consolidation or corrective phase. In the longer run, a correction / consolidation phase is a healthy sign and lays the foundations for the next impulsive up move. The weekly chart now depicts a Bearish Engulfing candlestick pattern. This pattern needs a confirmation in the form of a closing below the low of the candle. While the intermediate trend continues to be bullish, this candlestick pattern signifies a near term pause to the rally. Also the negative crossover in the weekly Stochastic oscillator does not bode well in the short term. Hence, we are of the opinion that if indices sustain below last weeks low of 18581 / 5636, then further price erosion can be expected. In this process, the market may slide towards 18416 / 5586 and 18194 / 5515, which are 38.2% and 50% Fibonacci Retracement levels of the rise from 17250 to 19138 / 5216 to 5815, respectively.

Resistance Levels Support Levels

Aggressive bears can encash the small down move with a strict stop loss above 18886 / 5729 level and the bulls are advised to stay away until they get any reversal signs. The said pattern will be negated once the indices manage to cross the high of the candle i.e. 19138 / 5816. In this case, we expect the indices to move towards 19542 19812 / 5850 5945 levels.

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Daily Technical Report

October 15, 2012

Bank Nifty Outlook - (11388)

On Friday, Bank Nifty opened on a positive note but selling pressure in the index heavy weights dragged the index lower to close near days low. On the weekly chart we are now witnessing a Bearish Engulfing candlestick pattern. The mentioned pattern is a bearish reversal pattern but requires confirmation in the form of a close below the 11244 mark. In addition the momentum oscillator RSI on the daily chart continue to be negatively poised along with overbought condition of momentum oscillator Stochastic on the weekly chart. The effect of the above mentioned indicators would be seen if the index sustains below 11244 level. In this scenario the index is likely to drift towards 11168 11060 level. On the upside 11554 11638 levels are likely to act as resistance in coming trading session.

Exhibit 2: Bank Nifty Daily Chart

Actionable points:
View for the day Resistance Levels Support Levels Neutral 11554 11638 11245 - 11168 Source: Falcon:

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Daily Technical Report

October 15, 2012

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 INFY ITC JINDALSTEL JPASSOCIAT KOTAKBANK LT LUPIN M&M MARUTI NTPC ONGC PNB POWERGRID RANBAXY RELIANCE RELINFRA SBIN SESAGOA SIEMENS SUNPHARMA TATAMOTORS TATAPOWER TATASTEEL TCS ULTRACEMCO WIPRO S2 18,513 5,621 11,274 1,386 205 3,846 1,098 1,720 762 252 238 345 323 359 352 213 1,651 329 3,304 559 730 622 1,745 116 568 1,030 147 2,248 280 409 87 617 1,615 549 843 1,340 156 273 805 113 529 810 505 2,214 170 671 700 267 96 415 1,255 2,000 345 S1 18,594 5,649 11,331 1,442 210 3,872 1,109 1,732 770 256 242 348 325 362 356 216 1,667 354 3,346 570 735 626 1,762 117 571 1,038 149 2,322 282 413 90 622 1,633 557 849 1,356 163 275 813 117 535 815 510 2,233 172 679 707 269 99 418 1,277 2,022 349 PIVOT 18,719 5,687 11,429 1,476 214 3,899 1,126 1,749 783 263 248 353 328 364 359 220 1,693 368 3,383 578 743 631 1,792 118 574 1,050 152 2,385 283 421 92 630 1,649 563 855 1,372 166 278 825 118 539 820 517 2,264 174 688 716 272 101 422 1,295 2,049 352 R1 18,800 5,714 11,486 1,532 219 3,925 1,137 1,762 791 267 252 356 331 366 363 223 1,709 393 3,425 590 748 635 1,809 120 577 1,057 154 2,458 285 425 95 635 1,666 571 861 1,388 173 281 833 122 544 825 522 2,282 176 695 723 274 105 425 1,317 2,071 356 R2 18,925 5,752 11,584 1,566 222 3,951 1,155 1,779 804 273 258 361 334 369 366 226 1,735 407 3,462 598 756 640 1,839 121 580 1,070 157 2,522 287 433 97 643 1,682 577 867 1,404 177 284 846 124 549 831 529 2,313 178 704 733 276 107 429 1,336 2,098 359

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Daily Technical Report

October 15, 2012
Research Team Tel: 022 - 39357800 E-mail: research@angelbroking.com Website: www.angelbroking.com

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Research Team
Shardul Kulkarni Sameet Chavan Sacchitanand Uttekar Mehul Kothari Ankur Lakhotia Head Technicals Technical Analyst Technical Analyst Technical Analyst Technical Analyst

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