Daily Technical Report December 06, 2012 www.angelbroking.com 1 Sensex (193 92) / NIFT Y (590 1) Yes terday, our benchma rk indices opened m arginally higher in-line with strong cues from other Asian bourses (especially, Hang Sang and Shanghai Composite). This resulted in the Nifty edging above 5900 mark during the initial hour of the session. However, the price action during the day was lackluster similar to previous couple of trading sessions. Realty and Metal sectors outperformed in yesterday’s trading session; whereas the IT and Teck counters kept our market und er press ure. The advance to decline ratio was st ron gly in favor of advancing count ers (A= 168 8 D= 12 27) (S ource – www.bseindia.com). Formation The ’20-day EMA’ and the ’20-week EMA’ are placed at 18 702 / 568 7 a nd 18 281 / 555 2 levels , respectively . O n the weekly chart, we are wit nessing a b reakout from ‘Downward Sloping Trend Line’ joining two significant swing high of 1981 1 / 5944 (April 2011 ) and 19137 / 5815 (Oct 2012) at 19050 / 5800 level. The target of the daily ‘Cha nnel’ pattern breakout comes around 19500 / 5950 level. The weekly ‘Stochastic’ and the ‘RSI’ oscillators are now sign aling a p ositive crossover. Trading strategy: Yesterday, we witnessed yet another session with lackluster activity and a narrow trading range. Further, initial gap opening above the high of ‘Spinning Top’ candle has negated the pattern. However, the daily chart now depicts yet another ‘Narrow Range Body’ formation. Hence, the uncertainty among market participants still persists. Going forward, yesterday’s high of 19464 / 5918 will now act as a resis tance in comi ng trad ing ses sion. O nly a sustainable move beyond this level, with strong volumes, may ultimately push indices to our mentioned level of 19812 / 594 5. O n the other hand, a breach of yesterday’s low would trigger intraday pessimism in the market. In this case, we may see weaknes s up to 192 57 – 1900 0 / 585 4 – 580 0 levels . E xhibit 1: N ifty Daily Chart Source: Falcon: Actionabl e points: View for the day N eutral Resist ance Level 59 18 - 59 45 Support Levels 585 4 – 58 00
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Shard ul Kulkarni - Head – Technicals Sam eet Cha van - Technical Ana lyst
Sacchitana nd Uttekar - Technical Ana lyst
M ehul Kothari - Technical Ana lyst
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