Technical Research | July 25, 2011
Daily Technical Report
Sensex (18722) / NIFTY (5634)
Markets opened higher and traded with positive bias throughout
Exhibit 1: Sensex Daily Chart
the day to close near the day's high. On the sector front,
Banking,Teck and Auto were among the major gainers,
whereas Consumer Durables ended with marginal losses. The
advance decline ratio was in favor of advancing counters
Formation
On the Daily chart, we are witnessing a chart pattern which
resembles a "Bullish Triangle" joining two significant highs of
Source: Falcon
19132 & 18766 /
5740 & 5645 and two significant lows of
to test an intermediate resistance level of 19132 / 5740. Also,
18326 & 18415 / 5496 & 5532.
due to RBI monetary policy and Derivatives expiry, there is a
Trading strategy:
possibility of high volatility in coming trading sessions. We
We are observing a "Bullish Triangular" pattern in Daily chart.
reiterate our view that a weekly closing above 19132 / 5740
A breakout of said pattern will be confirmed only if prices move
level would indicate a clear direction of the trend. Any
above 18766 / 5645 level. If indices manage to give a break
move beyond these levels, indices may test 19540 - 19700 /
out of this pattern then a positive momentum is likely to be
5850 - 5900 levels. On the downside, 18415 - 18326 /
witnessed in coming week. In such scenario, we expect markets
5532 - 5496 levels may act as strong support zone for the
markets.
Stock Recommendations:
Exhibit 2: Ambuja Cement (NSE Cash) - Daily Chart
Stock - Ambuja Cement (NSE Cash)
Action - Buy
Range
:
`131-125
Stop Loss
:
`119.95
Target
:
`147
Time Frame :
3 - 4 Weeks
Source: Falcon
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1
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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