Technical Research | August 24, 2011
Daily Technical Report
Sensex (16498) / Nifty (4949)
Markets opened marginally higher in-line with global cues
Exhibit 1: Sensex Daily Chart
and traded with immense volatility to finally close in the
positive territory. On the sector front, IT, Teck and Capital
Goods counters were among the major gainers. The
advance decline ratio was in favor of advancing counters
Formation
No major formation is seen on the chart.
Trading strategy:
Our benchmark indices opened on an optimistic note but
Source: Falcon
immediately fell down from the intraday highs to test 50%
retracement level of Monday’s candle. However, due to
oversold condition of momentum oscillators Indices
bounced back and rallied higher to test resistance level of
16450 / 4950. Going forward, If indices manage to trade
above 16550 / 4966 level then they are likely to test 16660
-
16750
/
5000
-
5050 levels. On the downside,
yesterday’s low of 16213 / 4863 may act as support in
coming trading session. A move below this level can drag
indices lower to test recent lows of 15987 / 4796.
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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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