Technical Research | August 22, 2011

Daily Technical Report

Sensex (16142) / Nifty (4846)
Markets opened nearly 2% lower due to extreme pessimism across global cues and traded with immense volatily throughout the day to give a close in the neagative territory. On the sector front IT, Capital Goods and Teck counters were among the major losers whereas Realty sector ended with a marginal gain. The advance decline ratio was in favor of declining counters (A=773 D=2083). (Source
www.bseindia.com)

Exhibit 1: Sensex Daily Chart

Formation
The ADX (14) line for Sensex / Nifty continues to move up from the last weeks level of 21.07 / 20.75 to the current weeks level of 23.15 / 22.85 along with DI (Negative Directional Index) moving upwards. The Daily chart depicts a candlestick pattern which resembles a Bullish Hammer. This pattern needs a confirmation. This possible upside rally can only be construed as a bounce back of the fall which can be used as exit opportunity for the traders. Also, due to Derivative expiry, the coming week is likely to trade with extreme volatility. On the downside, a violation of Fridays low of 15987 / 4796 can take indices to lower levels of 15650 15330 / 4675 4540.
Source: Falcon

Trading strategy:
Our benchmark indices tumbled from a high of 17036 / 5132 during the week and Nifty closed well below the psychological level of 5000. As expected and mentioned in our previous reports, markets fell down to test lower level of 16000 / 4800 on Fridays session. The ADX (14) indicator continues to move up with the rising DI (Negative Directional Index) which indicates strength in the negative trend in coming weeks. On the other hand, we are witnessing a candlestick pattern which resembles a Bullish Hammer coupled with oversold condition of momentum oscillators indicate a possibility of minor bounce back in coming sessions if indices manage to trade above the Fridays high 16288 / 4894. In this case, indices may test 16450 16750 / 4950 5050 levels. The said pattern will be negated if indices break low of the candle.

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Technical Research | August 22, 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 15,839 4,748 981 129 1,011 1,374 368 1,634 670 264 269 171 1,342 417 354 619 445 1,891 123 309 806 101 2,121 194 453 55 415 1,500 693 1,121 170 267 955 98 460 71 371 713 401 79 100 1,975 213 840 119 449 35 680 995 441 885 302 S1 15,990 4,797 990 130 1,040 1,401 376 1,658 676 267 277 179 1,377 423 373 629 453 1,942 131 312 819 104 2,173 197 469 57 424 1,523 706 1,140 172 272 973 100 469 73 379 723 414 81 103 2,006 218 853 122 458 36 696 1,024 450 907 311 PIVOT 16,139 4,845 999 132 1,070 1,428 385 1,699 685 271 282 183 1,430 433 385 638 458 1,971 136 316 836 107 2,223 201 480 59 433 1,563 717 1,153 174 276 999 101 476 74 387 731 422 82 104 2,058 221 864 125 472 37 718 1,043 459 927 320 R1 16,290 4,894 1,008 134 1,099 1,454 393 1,723 691 274 290 191 1,464 439 403 648 466 2,022 145 319 849 110 2,275 203 495 61 442 1,586 729 1,172 176 281 1,017 103 485 75 395 741 435 84 107 2,089 226 878 128 481 38 734 1,072 468 949 329 R2 16,439 4,943 1,017 135 1,129 1,481 403 1,764 700 278 295 196 1,517 448 415 657 472 2,051 150 323 866 113 2,326 207 506 63 451 1,626 740 1,186 178 285 1,043 104 493 77 402 749 443 86 108 2,140 230 888 130 495 40 756 1,091 477 969 337

Technical Research Team

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Technical Research | August 22, 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

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