Technical Report 31st October 2011

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Technical Research | October 31, 2011

On Friday’s session, indices opened nearly 3% higher

mainly due to strong positive sentiments across global

indices. Subsequently, indices moved in a narrow range

and closed almost near 5400 mark. On the sector front,

Metal, Realty, and Banking counters contributed major part

of Friday’s gain. There was no sector in the negative

territory. The advance decline ratio was strongly in favor of

advancing counters (A= 1728 D= 1139). (Source – www.bseindia.com)

Formation

• On the Weekly chart, the “Downward Sloping Trend

Line” is placed around the 18150 / 5475 level.

• We are observing a positive crossover in the Weekly

ADX (9) indicator.

• The Daily “200 SMA” is placed at the 18020 / 5410

level.

• The “Higher – Top Higher – Bottom” formation is

confirmed on the Daily chart after nearly six months.

• We are witnessing a downside gap area of 17671 to

17350 / 5322 to 5219 created on October 28, 2011.

Trading strategy:

Finally, after several attempts, the bulls have managed to

cross a firm resistance level of 17260 / 5198 and closed

convincingly above it. As a result, a “Higher – Top Higher –

Bottom” formation on the Daily chart was confirmed afternearly six months. Going forward, it is likely that indices are

now heading initially towards the Daily “200 SMA” placed

at the 18020 / 5410 level and then towards the

“Downward Sloping Trend Line” placed around 18150 /

5475. Thus, indices may face supply pressure near 18020 –

18150 / 5410 – 5475 levels. However, we are also

observing a positive crossover in the “ADX (9)” indicator,

which suggests possibility of a strong momentum if indices

manage to cross and sustain above the 18175 / 5475

level.

Daily Technical Report

Sensex 17805 / NIFTY 5361

Exhibit 1: Ni fty Daily Chart

Source: Falcon

Actionable points:

View NeutralResistance Levels 5410 – 5475Support Levels 5322 – 5219

The effect of positive crossover may push indices higher to

test 18300 – 18440 / 5500 – 5550 levels. At this juncture,

the “Narrow range” body formation on the Daily chart

indicates possibility of a consolidation or a minor pull backif indices trade below the 17671 / 5322 level. In this case,

indices may fill the gap of 17671 to 17350 / 5322 to 5219

created on O ctober 28, 2011.

We advise traders to adopt stock specific approach and

avoid taking undue risks.





Bank nifty opened with an upward gap, tested the mentioned

resistance level of 9970 and registered highest close nearly

after two months. We are observing a trend line breakout in

“RSI” momentum oscillator on daily chart, which suggest a

possibility of a breakout from the mentioned resistance level

of 9970-10030. If Bank Nifty manages to give a close above

this resistance level, then it is likely to rally towards 10300-

10350 levels.

On the downside, the gap area formed on 28th October i.e.

9837 – 9607 levels may act as support levels for the day.

Actionable poin ts:

View Bullish Positive Above 9970Expected Target 10300 – 10350Support Level 9837 – 9607

Bank N ifty Outlook - (9841)

Exhibit 2: Bank Ni fty Daily Chart

Source: Falcon

Stock Recommendations: Stock – Bharat Forge (Bse Cash)

Action – Buy

Last close ` 301.70

Buying Range ` 301 - ̀ 290

Stop Loss ` 285

Target ` 322

Justification – On the Daily chart, we are witnessing a

bullish “Inverse Head & Shoulder” breakout with significant

rise in volumes. Further, on Weekly chart the momentum

oscillator “RSI Smoothened” is positively poised. We advise

buying the stock in a range of ` 301 - ` 290 for a target

of ` 322 in coming 2 – 3 weeks.

Exhib it 3 : Bharat Forge (Bse Cash) Daily chart

Source: Falcon





Positive Bia :

Stock Name 5 Day EMA 20 Day EMA Expected Target Remark

Adani Power 85.3 84.1 95 View will change below 85.5

BF Utilities 467.4 467.3 535 View will change below 445Renuka 55.9 56 62 View will change below 54

Negative Bias:

Stock Name 5 Day EMA 20 Day EMA Expected Target Remark

Gitanjali Gems 369.7 363.3 335 View will change above 374





SCRIPS S2 S1 PIVOT R1 R2

SENSEX 17,558 17,681 17,795 17,918 18,031

NIFTY 5,284 5,322 5,361 5,399 5,438

BANKNIFTY 9,801 9,859 9,896 9,954 9,991

ACC 1,192 1,208 1,223 1,239 1,253

AMBUJACEM 153 157 159 163 165

AXISBANK 1,122 1,136 1,160 1,174 1,197

BAJAJ-AUTO 1,705 1,731 1,777 1,803 1,850

BHARTIARTL 377 384 397 404 417

BHEL 316 322 325 331 335

BPCL 613 625 647 659 681

CAIRN 296 300 306 311 317

CIPLA 291 294 297 300 303

DLF 230 239 245 255 261

DRREDDY 1,584 1,627 1,656 1,700 1,729

GAIL 408 418 434 444 460

HCLTECH 431 441 448 459 466

HDFC 671 680 690 698 708

HDFCBANK 471 477 486 492 500

HEROMOTOCO 2,085 2,121 2,176 2,213 2,268

HINDALCO 131 137 140 146 150

HINDUNILVR 339 345 352 359 366

ICICIBANK 903 918 927 942 950

IDFC 129 130 132 134 136

INFY 2,765 2,812 2,892 2,938 3,018

ITC 212 214 215 217 218

JINDALSTEL 526 552 577 604 629

JPASSOCIAT 74 76 78 80 82

KOTAKBANK 489 500 510 521 531

LT 1,366 1,391 1,407 1,432 1,448

M&M 850 860 869 879 888

MARUTI 1,067 1,096 1,141 1,170 1,215

NTPC 172 175 179 183 186

ONGC 272 278 287 293 301

PNB 927 945 973 991 1,019

POWERGRID 101 103 105 108 110

RANBAXY 505 510 518 523 531

RCOM 75 78 79 82 84

RELCAPITAL 347 359 368 380 389RELIANCE 876 888 896 908 916

RELINFRA 410 437 460 487 509

RPOWER 91 93 94 96 97

SAIL 109 112 115 118 121

SBIN 1,871 1,890 1,910 1,929 1,949

SESAGOA 198 202 207 211 217

SIEMENS 830 841 859 870 889

STER 120 127 132 138 143

SUNPHARMA 439 474 539 574 638

SUZLON 37 38 38 39 39

TATAMOTORS 193 200 204 211 215

TATAPOWER 97 100 103 105 108TATASTEEL 456 470 481 495 505

TCS 1,096 1,109 1,124 1,137 1,152

WIPRO 363 366 370 373 377

Technical Research Team

Daily Pivot Levels for Nifty 50 Stocks





Technical Report

RESEARCH TEAM

Shardul Kulkarni Head - Technicals

Sameet Chavan Technical Analyst

Sacchitanand Uttekar Technical Analyst

Mehul Kothari Technical Analyst

Ankur Lakhotia Technical Analyst

For any Queries, Suggestions and Feedback kindly mail to [email protected]

Research Team: 022-3952 6600 Website: www.angelbroking.com

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Technical Report 31st October 2011

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