TECHNICAL RESEARCH DESK. Bank Nifty to make a new High! Manav Chopra, CMT : Technical Analyst

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1 TECHNICAL RESEARCH DESK Bank Nifty to make a new High! Manav Chopra, CMT : Technical Analyst

2 CNX BANK NIFTY 15,230 (DAILY CHART) :- The index after the election result has been consolidating its gains and formed an Ascending triangle pattern above the 23.2% retracement level. The Stochastic indicator gave a bullish crossover which confirms the bullish bias. The Bank Nifty has strong support clusters at 14,950-15,000. The overall pattern indicates a possible new high for an upside target of 16,600-16,900 levels.

3 The Nifty has exceeded its previous May 14 highs which is not confirmed by Bank Nifty and has therefore formed a negative divergence and underperformance by the Banks. The nifty faces immediate resistance at 7,650-7,700 and resistance for Bank Nifty is around the 15,320 levels and close above would be positive and the prices would rally towards the triangle pattern target which is near the 15,700 levels.

4 USDINR `60.10 (WEEKLY CHART) :- The USDINR has deprecated since May end as the price took support at the falling channel pattern which caused some corrective rally in the Equity markets. The prices are nearing some important resistance clusters of `60.5- `60.7 levels which limits the upside in the near term. The pattern formation indicates a possibility of the USDINR to appreciate and test the levels of `59.2 & `58.5 levels which would therefore be positive for Equity markets and Bank index.

5 BANKBARODA `868 (DAILY CHART) :- The stock gave a bullish breakout from the falling wedge pattern. The price managed to retrace only 38.2% of the previous advance which suggest a strong bullish undertone. The RSI indicator has also confirmed the bullish breakout from the consolidation pattern. The prices have also managed to exceed the weekly resistance of `855 which confirms a strong trend reversal.

6 BANKINDIA `293 (DAILY CHART) :- The prices has declined in falling channel pattern and tested the important Fibonacci cluster of 275 levels. The RSI has breached the falling trend line drawn from its recent highs which confirms a bullish reversal. The prices have also formed a bullish reversal candles which confirms a short term bottom in place and a possible completion of the corrective decline.

7 Date Stock Name Call (Buy/Sell) Entry price Targets Stop Loss Duration 27-Jun-14 BANK NIFTY BUY / Month 27-Jun-14 BANKBARODA BUY / Month 27-Jun-14 BANKINDIA BUY / Month

8 Disclaimer: This Document has been prepared by Nirmal Bang Research (A Division of Nirmal Bang Securities PVT LTD). The information, analysis and estimates contained herein are based on Nirmal Bang Research assessment and have been obtained from sources believed to be reliable. This document is meant for the use of the intended recipient only. This document, at best, represents Nirmal Bang Research opinion and is meant for general information only. Nirmal Bang Research, its directors, officers or employees shall not in anyway be responsible for the contents stated herein. Nirmal Bang Research expressly disclaims any and all liabilities that may arise from information, errors or omissions in this connection. This document is not to be considered as an offer to sell or a solicitation to buy any securities. Nirmal Bang Research, its affiliates and their employees may from time to time hold positions in securities referred to herein. Nirmal Bang Research or its affiliates may from time to time solicit from or perform investment banking or other services for any company mentioned in this document. Nirmal Bang Research (Division of Nirmal Bang Securities Pvt LTD) B-2, 301/302, Marathon Innova, opp. Peninsula Corporate Park Off Ganpatrao Kadam Marg Lower Parel(W), Mumbai Board No. : /8001 Fax. :