Technical Research | August 1, 2011
Daily Technical Report
Sensex (18197) / NIFTY (5482)
Markets opened on a flat note in-line with the global cues and
Exhibit 1: Sensex Daily Chart
traded with extreme choppiness through out the day to close
flat. On the sector front, Realty, Metal and Oil & Gas were
among the major losers whereas FMCG ended with a marginal
gain. The advance decline ratio was in favor of declining
A Doji
Formation
The Daily chart of the Indices depicts a "Doji" candlestick
formation which indicates indecisiveness prevailing at the current
Source: Falcon
level. (Refer exhibit 2)
Policy" and breached 18415 - 18326 / 5532 - 5496 level which
We are observing that prices have closed near 50%
was acting as a strong support zone since the previous few
Fibonacci retracement level of an upside rally from 17314 to
trading sessions. Going forward, if indices break Friday's high
19132 / 5195 to 5740 levels. (Refer exhibit 2)
of 18335 / 5521, then they may bounce back to the levels of
18538 -18771 / 5577 - 5648. On the downside, 18131 /
Also, on the Weekly chart, the RSI momentum oscillator
5453 level (Friday's low) may provide a support. The violation
has convincingly slipped below the 50 mark after nearly 3-4
of this low may reinforce the negative momentum and, in such
weeks. RSI sustaining below the 50 level is a sign of weakness.
a case, indices may test 18000 - 17800 / 5400 - 5345 levels.
Trading strategy:
We advise traders to stay light on their positions and trade
Markets fell from their high of 18945 / 5702 registered in the
with proper stop losses.
initial part of the week after the announcement of "RBI Monetary
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Technical Report
RESEARCH TEAM
Shardul Kulkarni
Head - Technicals
Mileen Vasudeo
Technical Analyst
Sameet Chavan
Technical Analyst
Sacchitanand Uttekar
Technical Analyst
Mehul Kothari
Technical Analyst
Research Team: 022-3952 6600
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