Daily Technical Report March 18, 2013www.angelbroking.com 1 S ense x ( 19428) / N IFTY (5873) On Friday, indices opened on a flat note as indicate d by t he in line with other Asian markets. Subsequently, indices pared all gains to close in the negative territory. The Realty, Banking and O il & Gas counters were am ong the m ajor losers; whereas Consumer Durables was the only sector that gained ground. The advance to decline ratio was in favor o declining counters (A=1114 D=1754) (Source– www.bseindia.com) Formation T he ’2 0-d ay E MA ’ an d t h e ’2 0-w e e k E MA ’ ar e p la ce d a 19410 / 5869 an d 19244 / 5830 levels, res pect ively. T he w e e k ly c h ar t ex h ib it s a ‘B u lli s h E ngu lf in g’ pattern bu the monthly chart exhibits a ‘Bearish Engulfing’ pattern. Indices have closed above the ‘Downward Sloping Trend Line’, drawn by joining two significant highs of 21109 / 6339(high of November 05, 2010 weekly candle) and 19137 / 5816 (high of Oct ober 05, 2012 wee kl candle).T rading s t rat egy: T h e fi rst h al f of t h e c on c lu d e d w ee k w as un do u bt e dl dominated by the bears. However, the second half turned out to be directionless as we witnessed very sharp movements on both sides. Indices have not confirmed the weekly ‘Bullish Engulfing’ pattern mentioned in our earlier report. Going forward, only a sustainable move beyond thi we ek’s high of 19755 / 5971 would confirm the abov e mentioned pattern as well as the breakout from the probable ‘Inverse Head and Shoulder’ pattern. In such a scenario, we may witness strong buying interest among marke participants. Indices may then resultantly rally toward 19768 - 19865 / 5991 – 6025 or ev en re-test th e recen sw ing high of 20204 / 6112. Conv ers ely , t he we ek’s low o 19179 / 5791 poses as a ke y s upport lev el in the coming trading sessions. Any sustainable move below this level would trigger immense pessimism in the market and indice may re-test recent sw ing lows of 18931 – 18760 / 5712 – 5663. Exhibit 1: Nifty Daily Chart Source: Falcon: Actionable points: View Bearish Below 5861 Ex pected target 5790 - 5750 Resistance levels 5946 - 5971
