Technical Research | July 18, 2011
Daily Technical Report
Sensex (18562) / NIFTY (5581)
Markets opened on a flat note and traded with extreme
Exhibit 1: Nifty Daily Chart
choppiness throughout the trading sessions. On the sector
front, Metal, Auto and Realty were among the losers whereas
IT sector was on a gaining side. The advance decline ratio was
marginally in favor of Declining counters (A=1384 D=1472).
Formation
On the Weekly chart, the downward sloping trend line,
joining the two significant highs of 21109 & 20665 / 6339 &
Source: Falcon
6181, remains a major resistance for the indices. This resistance
zone lies in the range of 19000 - 19132 / 5700 - 5740
Trading strategy:
The current price action suggests that indices are trading in the
range of 19132 / 5740 on the upside and 18326 / 5496 on
the downside. Any breach on either side of the range would
dictate the direction of the trend. In the coming week if indices
cross 18810 / 5653 level, then they may test the upper band of
the range of 19132 / 5740. A weekly closing above 19132 /
5740 level would indicate a clear breakout on the upside. On
the other hand, if 18326 / 5496 level is violated, then indices
may test 17950 - 17805 / 5400 - 5350 levels.
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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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