Technical Research | August 09, 2011
Daily Technical Report
Sensex (16990) / NIFTY (5119)
Yesterday, for a second consecutive session our markets
Exhibit 1: Sensex Daily Chart
opened on a pessimistic note and traded with extreme
volatility throughout the trading session. On the sector front,
Realty, IT, Teck and Metal counters were among the major
losers. The advance decline ratio was in favor of declining
Formation
On the Daily chart, we are witnessing a candlesticks
pattern which resembles a “Spinning Top”. This pattern
needs a confirmation.
Spinning Top
Trading strategy:
Due to negative sentiments across global markets in
yesterday’s session, our benchmark indices drifted towards
the immediate support level of 16750 / 5050 and then
bounced sharply towards 17250 / 5200 level. In-spite of
Source: Falcon
strong intraday bounce, indices could not sustain at higher
levels and closed marginally above the initial opening level.
We advise traders to stay light on their positions and trade
Looking at the global cues it can be said that Indices would
with proper stop losses. Investors can use the dip towards
open gap down and the low of the “Spinning Top” might
4800 to enter (partial buying advised) in counters with
not hold. On the downside, 16180 / 4850 level may
strong fundamentals and good long-term prospects.
provide support in coming session. Any violation of this
level, would lead to further selling pressure and indices may
drift towards the next support at 15725 / 4692 level. On
the upside,
16750 / 5050 can now be considered as
immediate resistance.
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Technical Report
RESEARCH TEAM
Shardul Kulkarni
Head - Technicals
Sameet Chavan
Technical Analyst
Sacchitanand Uttekar
Technical Analyst
Mehul Kothari
Technical Analyst
Ankur Lakhotia
Technical Analyst
Research Team: 022-3952 6600
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