Daily Technical Report

May 14, 2012

Sensex (16293) / NIFTY (4929)

On Friday, we witnessed a gap down opening in-line with negative global cues. Subsequently indices bounced sharply towards the hourly 20 EMA, but a sharp fall in the closing hour of the session led indices to close below 4950 mark. On the sectoral front, Health Care, Power and FMCG counters were among the major losers; whereas Auto and Banking sectors ended marginally in the positive territory. The advance to decline ratio was strongly in favor of declining counters (A=981 D=1772) (Source www.bseindia.com)

Exhibit 1: Nifty Daily Chart

Source: Falcon

Formation The 200-day SMA (Simple Moving Average) and 20-day EMA (Exponential Moving Average) have now shifted to 16920 / 5100 and 16940 / 5130, respectively. The 20-Week EMA is placed at 17100 / 5180 level. Indices have now tested 16430 / 4950 level, which is the 61.8 % Fibonacci Retracement level of the rise from 15135 / 4531 (Low on December 23, 2011) to 18524 / 5630 (High on February 22, 2012).

Actionable points:
View Resistance Level Support Levels Neutral 4976 5050 4906 4850

Trading strategy: On the back of few negative domestic as well as global inflows, we witnessed a sharp correction during the week after a decent bounce on Mondays session. Indices tested the mentioned support levels of 16430 / 4950 and have closed just below this level. This support level coincides with the 61.8% Fibonacci Retracement level of the rise from 15135 / 4531 (Low on December 23, 2011) to 18524 / 5630 (High on February 22, 2012). We are now observing a series of Narrow Range body formations on the daily chart. This indicates uncertainty among the market participants and signals probable exhaustion of a current negative momentum. Momentum oscillators on the daily chart are placed well inside the oversold territory.

However, we must also take into consideration that the oversold indication of momentum oscillators signals loss of momentum and does not necessarily indicate a reversal. Hence, only if indices sustain above Fridays high of 16447 / 4976, we may witness a bounce up to 16700 16840 /5050 5090 levels. A violation of Fridays low (16233 / 4906) would clearly increase the chances of a further fall and, as a result, indices may slide towards 16000 15860 / 4850 4800 levels. We are of the opinion that traders who intend to trade with a positive bias should enter the market only if indices sustain and close above the weekly high of 16945 / 5125.

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May 14, 2012

Bank Nifty Outlook - (9398)

On Friday, Bank Nifty opened on a pessimistic note and found support near our mentioned support level of 9270. We are now witnessing a Spinning top candlestick pattern. The mentioned candlestick stick pattern is formed after a Doji candlestick formed during Thursdays session. Both the patterns suggest possibility of a minor pullback or consolidation in the ongoing downtrend. Moreover the momentum oscillators on the daily chart are in an oversold condition. We are also witnessing Positive divergence in momentum oscillator RSI on the hourly chart. Going forward, for the coming week, we expect the index to trade in the range of 9200 9700. Within the mentioned range, 9536 9610 levels are likely to act as intermediate resistances and 9296 - 9232 levels are likely to act as support in coming trading session. Actionable points:
View Resistance Levels Support Levels Neutral 9536 9610 9296 9232

Exhibit 2: Bank Nifty Daily Chart

Source: Falcon

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Daily Technical Report

May 14, 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 16,111 4,867 9,173 1,126 139 3,536 950 1,457 625 302 213 679 308 307 308 177 1,603 310 2,299 481 639 501 1,810 110 429 794 114 2,253 228 435 58 521 1,100 633 1,200 144 249 722 99 453 681 454 86 1,789 169 691 92 549 282 87 403 1,214 389 S1 16,202 4,898 9,286 1,146 141 3,580 975 1,507 637 305 217 690 313 313 311 182 1,632 314 2,345 485 642 506 1,827 111 431 804 117 2,282 231 446 60 531 1,119 644 1,218 146 251 733 100 466 689 463 88 1,821 174 700 93 560 290 90 407 1,222 395 PIVOT 16,325 4,937 9,409 1,175 144 3,627 992 1,537 647 309 221 702 320 322 316 186 1,673 319 2,418 488 648 513 1,852 114 433 813 120 2,321 235 457 62 542 1,143 653 1,235 148 255 747 102 482 696 474 89 1,853 177 710 95 577 296 94 414 1,230 403 R1 16,416 4,968 9,522 1,195 146 3,671 1,017 1,587 659 311 225 712 324 328 320 192 1,702 324 2,464 492 652 518 1,869 116 434 823 124 2,350 238 468 64 553 1,161 664 1,252 151 257 758 103 495 704 483 91 1,885 182 719 97 588 304 97 418 1,238 409 R2 16,538 5,007 9,645 1,223 149 3,718 1,034 1,617 669 315 229 724 331 337 325 196 1,744 329 2,537 495 658 525 1,895 119 436 833 126 2,389 241 479 66 564 1,185 673 1,269 153 261 772 104 511 711 494 93 1,917 185 729 98 606 310 100 425 1,245 418

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Daily Technical Report

May 14, 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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