Daily Technical Report 7th May 2012
S&P CNX NIFTY – Daily Technical Report
7th
May 2012
Source: NSE
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Nifty
opened in Red on Friday which was expected and came down to test 5150. With
Rupee threatening to go down further, the equity market continues to bear the
brunt of FII selling. Also uncertainty regarding GAAR issue and the inaction
on the Policy front is not helping the market. With not much going in the
favour of the Bulls, the Bears pulled down the market below the critical
level of 200dma. The long term trend of the market will be under threat if
the market continues to stay below the 200dma.
Technically Speaking
Stochastic Indicator is sell mode
as %K is below %D, but both the lines are below the center line. MACD had
given a sell signal as 26 EMA and 12 EMA are placed below 9EMA moving
averages which gives negative signals. Money Flow continues to decline which
indicates that money is flowing out of the index. RSI continues to be in sell
mode which indicates that strength of the Index is weak. ADX clearly
indicates that Index is trendless. -DI line is placed above +DI lines and
they are moving sideways. OBV is moving sideways without crossing the previous
top made on February thus indicating negative signals. Daryl Guppy continues
to be in sell mode. Bollinger Band has given a fresh break out on down side. Nifty
continues to trade below 20-day EMA and 50-day SMA. On Friday 4th
May 2012 Nifty breached 100-day SMA & 200-day SMA. 20-day EMA has given a
bearish crossover as it is placed below 50-day SMA. Volumes were reasonably good.
According to Japanese candlestick
Nifty on daily charts has made Evening Star on 2nd May 2012 the
effect of that pattern still resumes. On the weekly charts, Nifty still show down trend.
From the above indicators it is
expected that Nifty will come down. The immediate target for Nifty is 4900
and if it is breached 4750 will be the next target only if it sustains below
200 DMA. A strong
support is likely to emerge between 5080-5042 which is a result of confluence
of 50% Retracement level of the entire rise, Falling Channel Top and
Trendline. A breach of this Support zone will result in the long term trend
of the market getting affected. Again Nifty Fut Open Interest indicates that
participants are short in the market. However we expect that Nifty will test
5000 today.
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Stocks to watch out today
Negative: ACC, Ambuja Cement, Axis Bank, Bajaj
Auto, Bank of Baroda, Bhel, Cairn India, Coal India, Grasim, HDFC ltd, IDFC,
L&T, NTPC, ONGC, PNB, Siemens, Sterlite Inds, Tata Steel.
Positive: Cipla, HUL, Sun Pharma, Bharat
Forge, Bhushan Steel.
Daily chart of Apollo Tyres
Short Term Positional Calls based on
Technical Analysis (5-7 days)
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Scrip Name
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Call
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CMP
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Target
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Stop Loss
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Apollo Tyres
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Sell
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80
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74
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83.5
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Cairn India
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Sell
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332.85
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315
|
345
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Bombay Dyeing
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Sell
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498
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435
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530
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Axis Bank
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Sell
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1009
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930
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1040
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Bajaj Auto
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Sell
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1502.95
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1425
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1545
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Short Term Calls Target Achieved
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Scrip Name
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Date
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Call
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CMP
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Target
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Stop loss
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Target Achieved
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Date
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BGR Energy
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3/5/2012
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Sell
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334.05
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315
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343
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315
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4/5/2012
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ONGC
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3/5/2012
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Sell
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267.5
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260
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271
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260
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4/5/2012
|
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ICICI Bank
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4/5/2012
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Sell
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857
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820
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870
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820
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4/5/2012
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Siemens
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4/5/2012
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Sell
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765.55
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745
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782
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745
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4/5/2012
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Comments
MAHARASHTRA SCOOTERS