Daily Technical Report

October 01, 2012

Sensex (18763) / NIFTY (5703)

On Friday, the October series started on a positive note where our benchmark indices closed above the psychological 5700 mark. The rally was mainly lead by Auto, Consumer Durables and FMCG counters; whereas Realty was the only sector in red. The action was mainly seen in the mid and small cap stocks while the large caps remained relatively subdued. The advance to decline ratio was in favor of advancing counters (A=1644 D=1248) (Source www.bseindia.com).

Exhibit 1: Nifty Daily Chart

Formation
The 20-day EMA and the 20-week EMA are placed at 18265 / 5535 and 17625 / 5340 levels, respectively. The monthly RSI oscillator is moving higher from the 50 mark and the ADX (9) indicator is now signaling a positive crossover. The weekly chart depicts a Narrow Range body formation.
Source: Falcon:

Trading strategy:
As mentioned in the previous report, this September turned out to be a memorable month for the bulls. One interesting observation to note would be that the price action in August September 2012 is very much identical with the move seen in August September 2010. Considering this monthly closing, we can now infer that the monthly 'RSI' indicator is now heading upwards from the 50 mark. In addition, the ADX (9) indicator has signaled a positive crossover. The combination of these technical tools signifies that the bulls are gaining the upper hand and reasonable upside can be expected in coming months. At this juncture, there is practically no change in the price structure except that the markets have consumed time. This is clear from the fact that the weekly chart depicts a 'Narrow Range' body formation. The Indices have strong support near to 18291/ 5534 level. Any decline towards these levels will be an opportunity to buy. Traders should take a note that confidence amongst the bulls and the probability of a strong bullish up move is directly proportional to the amount of time spent in the zone of 18800 18291 / 5700 5534.

Actionable points:
View Resistance Levels Support Levels Neutral 5720 5741 5630 - 5580

More the time spent in this range, more bullish will be the chart structure. This phenomenon is called as a Time wise correction and in this phase market participants get accustomed to new levels. This in turn results in the initially anticipated higher levels, now getting converted into a new Normal. We reiterate our view that once the indices move beyond 19132 / 5741, then our markets are likely to rally towards the next possible target of 19542 19812 / 5850 5945 and even the possibility of testing 6000 (Nifty) cannot be ruled out. We continue to advise that traders should target stock specific moves and trade with strict stop losses.

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Daily Technical Report

October 01, 2012

Bank Nifty Outlook - (11457)

The Bank Nifty opened on an optimistic note on Friday and traded in a narrow range throughout the session. At this juncture the index is constantly taking support near the hourly 20 EMA. Looking at the price structure on the daily as well as hourly charts, it can be said that a clear direction is likely to emerge only after the index move out of the zone of 11537 11320 levels. On the upside, a strong breakout beyond 11537 along with increasing volumes will indicate a bullish Flag breakout. However, a breach of 11320 will indicate that further consolidation (Time and Price wise correction) is likely to continue. For the day, index has support at 11438 level whereas resistance is at 11537.

Exhibit 2: Bank Nifty Daily Chart

Actionable points:
View Resistance Levels Support Levels Neutral 11537 11320 - 11210 Source: Falcon:

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Daily Technical Report

October 01, 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 M&M MARUTI NTPC ONGC PNB POWERGRID RANBAXY RELIANCE RELINFRA SAIL SBIN SESAGOA SIEMENS STER SUNPHARMA TATAMOTORS TATAPOWER TATASTEEL TCS WIPRO S2 18,606 5,656 11,378 1,426 199 3,867 1,119 1,791 771 260 240 337 326 359 347 224 1,613 376 3,222 564 756 622 1,848 116 531 1,042 150 2,493 264 414 80 640 1,569 845 1,325 163 275 823 116 519 826 519 83 2,196 168 701 98 664 259 105 392 1,264 375 S1 18,684 5,679 11,418 1,448 200 3,901 1,127 1,811 785 263 243 343 329 369 353 229 1,629 379 3,268 571 765 625 1,864 118 539 1,051 152 2,514 268 421 81 644 1,583 855 1,338 166 278 832 118 524 832 528 84 2,218 170 705 99 680 263 106 397 1,280 378 PIVOT 18,777 5,707 11,477 1,463 202 3,934 1,139 1,830 793 265 248 351 332 376 361 237 1,641 384 3,308 579 772 630 1,887 120 544 1,062 156 2,547 270 432 83 648 1,601 864 1,354 167 280 841 120 529 840 545 86 2,248 172 709 100 690 268 108 403 1,292 381 R1 18,856 5,731 11,516 1,485 204 3,967 1,148 1,850 807 268 251 356 334 386 368 241 1,657 388 3,354 586 781 634 1,904 123 551 1,070 159 2,568 275 439 84 652 1,615 874 1,367 170 283 849 122 535 845 554 87 2,270 173 713 100 706 272 109 407 1,308 384 R2 18,948 5,759 11,576 1,500 206 4,000 1,159 1,870 816 270 256 364 337 393 376 249 1,668 392 3,395 594 788 638 1,927 124 556 1,082 163 2,601 277 450 86 655 1,634 882 1,383 171 284 859 123 540 853 570 89 2,300 176 717 101 716 276 110 414 1,321 387

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Daily Technical Report

October 01, 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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