Technical Research | August 25, 2011
Daily Technical Report
Sensex (16285) / Nifty (4889)
Markets opened with a neutral bias and moved higher
Exhibit 1: Sensex Daily Chart
during the first hour of the day but could not sustain at
higher levels as selling pressure dragged indices to close in
the negative territory. On the sector front, Auto, Metal and
Banking counters were among the major losers. The
advance decline ratio was in favor of declining counters
Formation
No major formation is seen on the chart.
Trading strategy:
Source: Falcon
Our indices opened on a subdued note but could not
manage to cross previous days high as selling pressure
intensified near resistance level 16550 / 4966. Going
forward, 16550 / 4966 level may act as resistance in
coming sessions. If indices manage to cross this level then
they are likely to rally towards 16660 - 16750 / 5000 -
5050 levels. On the downside, if indices break 16213 /
4863 level then they may drift towards the recent lows of
15987 / 4796. Due to derivative expiry, the coming trading
session is likely to trade with extreme volatility and
choppiness. Hence, traders are advised to stay light on
positions and trade with strict stop losses.
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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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