Technical Research | August 26, 2011
Daily Technical Report
Sensex (16146) / Nifty (4840)
Our indices opened on a flat note and traded with immense
Exhibit 1: Sensex Daily Chart
volatility throughout the day and Nifty gave a close
marginally below 4850 level. On the sector front, IT, Metal
and Banking counters were among the major losers
whereas Realty sector ended with a marginal gain. The
advance decline ratio was in favor of declining counters
Formation
We are witnessing an extreme oversold condition
of the “RSI - Smoothened” oscillator.
Source: Falcon
Trading strategy:
As expected, yesterday’s session traded with immense
volatility and choppiness. Also, we witnessed that indices
slipped gradually throughout the session. Going forward,
Yesterday’s high of 16374 / 4916 may act as resistance. A
move beyond this level can take indices higher to test
16550 - 16660 / 4966 - 5000 levels. Moreover, we are
witnessing that RSI - Smoothened oscillator is placed well in
the extreme oversold zone which indicates a possibility of a
bounce in coming trading sessions. On the downside,
16104 - 15987 / 4825 - 4796 levels may act as support in
coming trading session. A violation of 15987 / 4796 can
take indices to lower levels of 15650 - 15330 / 4675 -
4540.
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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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