Daily Technical Report
October 10, 2014
Sensex (26637) / Nifty (7961)
Exhibit 1: Nifty Daily Chart
Yesterday, our markets opened with an upside gap as
indicated by the SGX Nifty. Subsequently, the Nifty
maintained its optimism throughout the session and
extended early morning gains to close one and half a
percent higher than the previous close. On the sectoral font,
all the sectors closed on a positive note. The Capital Goods
and Banking sectors were among the major gainers. The
advance to decline ratio was strongly in favor of the
advancing counters. (A=2034 D=921) (Source-
Formations
The ’89-day EMA’ and the ’89-week EMA’ are placed at
25678 / 7675 and 22160 / 6629 levels, respectively.
The ’20-day EMA’ and the ‘20-week EMA’ are placed at
26770 / 8011 and 25564 / 7642 levels, respectively.
Source: Falcon
Actionable points:
Trading strategy:
View
Neutral
Quite unexpectedly to most of the market participants
Support Levels
7900 - 7840
(including us), we witnessed a gap up opening in our
Resistance Levels
7980 - 8020
markets and then the optimism accelerated as the day
progressed. As a result, the Nifty went on to post a stellar
relief rally after few day's weakness, mirroring up move
seen in US bourses on Wednesday. The Nifty has now
closed well above the 7900; but, the current position is
placed around the strong resistance zone of the hourly '89
EMA' (7960 - 7980). Hence, we are of the opinion that, so
long as Nifty doesn't overcome 7980 level on a sustainable
basis, yesterday's up move can be construed as a bounce
and hence, the near term trend remains negative. Going
forward, in case of any weakness around this resistance
zone may once again drag the Nifty lower to test 7900 -
7840 levels. On the other hand, only a breakout above
7980 on a closing basis may confirm the resumption of the
higher degree uptrend.
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Daily Technical Report
October 10, 2014
Bank Nifty Outlook - (15741)
Exhibit 2: Bank Nifty Daily Chart
Yesterday, the Bank Nifty too opened higher and went on
to become one of the major contributor in yesterday's up
move. As mentioned in our previous report, the banking
index extended its gains after surpassing the 15400 mark.
In fact, the momentum was so strong that propelled the
index way beyond our expected level of 15550. However,
similar to the Nifty, the banking index too bounced back
towards the near term resistance zone of 15800, which is
the daily '20 EMA' level. Going forward, only a
sustainable move above this level may extend this rally
towards the 16000 mark. On the flipside, a strong selling
pressure at current level may again pull the index lower to
retest 15550 - 15400 levels.
Actionable points:
View
Neutral
Resistance Levels
15800 - 16000
Support Levels
15550 - 15400
Source: Falcon
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Daily Technical Report
October 10, 2014
Research Team Tel: 022 - 30940000
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Sameet Chavan
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Technical Analyst
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