Technical Research | June 20, 2011
Daily Technical Report
Sensex (17986) / Nifty (5397)
Markets witnessed positive opening but selling gradually picked
Exhibit 1: Sensex Daily Chart
up as day progressed which led the indices to close near days
H
low. On the sectoral front IT, Oil and Gas, HC and Auto
contributed for the fall in the indices whereas CD and
S
S
Bankex ended up with marginal gains. The advance decline
ratio was in favor of declining counters (A=957 D=1946).
(Source - Iris software)
Formation
On the Daily chart, in view of the current price action we
Source: Falcon
are observing a possible "Head and Shoulder in making. Any
close below the prior swing low of 17786 / 5328 would confirm
the said pattern.
Trading strategy:
Markets for past four weeks are trading in the range of
17786 / 5328 on the downside and 18673 / 5605 levels on
the upside. As mentioned in earlier report, that a decisive break
on either side would dictate the direction of the trend. At present
prices are trading near the lower range of the band .Any close
below the prior swing low of 17786 / 5328 level would confirm
the "Head and Shoulder pattern. In such scenario indices may
test 17470 - 17296 / 5233 - 5178 levels. On the other hand,
if indices hold the swing low of 17786 / 5328 level then a
bounce up to 18039 - 18160 - 18258 / 5414 - 5451 - 5480
could be expected. Traders holding on to their long
positions in Nifty futures should exit, if Indices close below
17700 / 5300 level.
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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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