Technical Research | August 12, 2011
Daily Technical Report
Sensex (17059) / NIFTY (5138)
Our benchmark indices opened on a flat note in-spite of
Exhibit 1: Sensex Daily Chart
weak closing of European and U.S. markets. We witnessed
a range bound movement throughout the trading session
which led indices to close near its opening level. On the
sector front, Banking, Teck and Realty were among the
major losers. The advance decline ratio was in favor of
declining counters (A=1336 D=1481). (Source
-
Formation
The Daily chart exhibits a candlestick pattern which
resembles a “Doji”. This pattern indicates
indecisiveness and requires a confirmation.
Source: Falcon
The Gap area formed on the daily chart in the
range of 17665 - 17358 / 5323 - 5230 would act
as the next key resistance levels for the Indices.
Trading strategy:
Markets opened with a neutral bias and traded in a narrow
range of 17208 to 17012 / 5185 to 5121. On the Daily
chart, we are observing a candlestick pattern which
resembles a “Doji”. Looking at the global indices, it is likely
that our Benchmark indices may open on a positive note. If
indices manage to trade convincingly above 17208/ 5185
level then they may test 17350 / 5230 level. The above
mentioned pattern will have its bearish implication only if
indices trade below yesterday’s low of 17012 / 5121 level.
The activation of this pattern can attract some selling
pressure which can drag indices to the lower levels 16900 -
16640 / 5100 - 5010.
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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: 022-3935 7600
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