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Technical Report 14th November 2011
Technical Report 14th November 2011
Formation
The Daily 200 SMA is placed at 18000 / 5400 level. The 20 EMA on the Daily and Weekly chart is placed
Source: Falcon
at 17165 / 5165 and 17300 / 5200, respectively. We are observing a negative crossover in Daily RSI
Smoothened oscillator and the ADX (9) indicator. The Daily chart depicts the Japanese candlestick
Actionable points:
View Resistance Levels Support Levels Neutral 5199 - 5240 5142 5085
patterns such as Long Legged Doji and Spinning Top in Sensex and Nifty, respectively.
Trading strategy:
On Friday, indices registered a Weekly low of 17096 / 5142 and closed marginally above the lower level (17165 / 5165) of the trading range mentioned in our previous report. Therefore, going forward, this level may act as an important support. On Wednesday, we observed a negative crossover in RSI Smoothened oscillator and this crossover is still intact. In addition, the Daily chart depicts a negative crossover in ADX (9) indicator, which implies that if indices sustain below Fridays low of 17096 / 5142, then a further fall is expected. In this case, indices may test crucial support levels of 16900 16669 / 5085 5011. On the other hand, the Daily chart exhibits Japanese candlestick patterns such as Long Legged Doji in Sensex and Spinning Top in Nifty.
Both patterns indicate uncertainty prevailing at current levels and both patterns need further confirmatory signals. These patterns will be confirmed ONLY if the indices cross and close above the 17279 / 5199 mark. In such a scenario, indices may rally towards 17400 17570 / 5240 5285 levels. On the upside, 17700 / 5326 level remains to be a strong resistance. A sustainable move above this may push indices to test 18000 18100 / 5400 5450 levels. Therefore, we reiterate our view that traders should stay light on positions and continue to adopt a stock-specific approach.
Stock Recommendations:
Stock Indraprastha Gas (NSE Cash) Action Buy Last close - ` 428.90 Buying Level - Buy above ` 432 Stop Loss - ` 423.50 Target - ` 452
Justification On the Daily chart, we are witnessing a breakout from the downward sloping trend line with significant rise in volumes. Also, the ADX (9) indicator and 5 & 20 Day EMA are positively poised. Hence, we advise buying this stock ONLY above ` 432 for a target of ` 452 in coming 3 4 trading sessions.
Positive Bias: Stock Name IGL M&M Chambal Fert 5 Day EMA 422.6 834 92.3 20 Day EMA 417 827 92.7 Expected Target 452 880 102 Remarks View will change below 414 View will change below 805 View will change below 89.50
Negative Bias:
Remarks View will change above 263 View will change above 37.40
RESEARCH TEAM
Shardul Kulkarni Sameet Chavan Sacchitanand Uttekar Mehul Kothari Ankur Lakhotia Head - Technicals Technical Analyst Technical Analyst Technical Analyst Technical Analyst
For any Queries, Suggestions and Feedback kindly mail to sameet.chavan@angelbroking.com Research Team: 022-3952 6600 Website: www.angelbroking.com
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