Technical Research | August 29, 2011
Daily Technical Report
Sensex (15849) / Nifty (4749)
Markets opened on a quite note and failed to sustain at
Exhibit 1: Sensex Daily Chart
higher levels as selling pressure dragged indices below
recent low of 15987 / 4796. On the sector front, Realty,
Metal and Oil & Gas counters were among the major
losers. The advance decline ratio was in favor of declining
Formation
We are still observing that the ADX (14) line for
Sensex / Nifty continues to rise from the last week’s
level of 23.15 / 22.85 to the current week’s level of
25.23
/
24,97 along with
- DI (Negative
Directional Index) moving upwards.
The momentum oscillator viz. the “RSI
-
Smoothened” on the Daily chart is placed well in
Source: Falcon
the oversold territory.
Trading strategy:
However, it is extremely difficult to predict from what level
In the last week, we witnessed a sluggish movement till
this bounce is likely to occur as the primary downtrend is
Thursday’s session but indices failed to hold recent low of
gaining strength. Therefore, we advise traders to avoid
15987 / 4796 on Friday's session due to immense selling
creating fresh short positions as a logical risk reward ratio is
pressure and registered a weekly close below 16000 /
highly unfavorable at this juncture. In case of a bounce, if
4800 mark. The strength in the ADX
(14) indicator
indices sustain above 16256 / 4888 level then are likely to
continues to increase and we reiterate our view that a rising
test 16550 - 16750 / 4966 - 5050. Going forward, indices
ADX on the weekly chart is a negative sign for the markets.
may test 4675 - 4540 if they breach Friday’s low of 16765
However, on the Daily chart, RSI - Smoothened oscillator
/ 4720.
has entered an extreme oversold territory. This can be
construed as markets are due for a minor bounce or
consolidation in coming sessions.
For Private Circulation Only |
1
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
DISCLAIMER: This document is not for public distribution and has been furnished to you solely for your information
and must not be reproduced or redistributed to any other person. Persons into whose possession this document may
come are required to observe these restrictions.
Opinion expressed is our current opinion as of the date appearing on this material only. While we endeavor to update
on a reasonable basis the information discussed in this material, there may be regulatory, compliance, or other reasons
that prevent us from doing so. Prospective investors and others are cautioned that any forward-looking statements are
not predictions and may be subject to change without notice. Our proprietary trading and investment businesses may
make investment decisions that are inconsistent with the recommendations expressed herein.
The information in this document has been printed on the basis of publicly available information, internal data and
other reliable sources believed to be true and are for general guidance only. While every effort is made to ensure the
accuracy and completeness of information contained, the company takes no guarantee and assumes no liability for any
errors or omissions of the information. No one can use the information as the basis for any claim, demand or cause of
action.
Recipients of this material should rely on their own investigations and take their own professional advice. Each recipient
of this document should make such investigations as it deems necessary to arrive at an independent evaluation of an
investment in the securities of companies referred to in this document (including the merits and risks involved), and
should consult their own advisors to determine the merits and risks of such an investment. Price and value of the
investments referred to in this material may go up or down. Past performance is not a guide for future performance.
Certain transactions - futures, options and other derivatives as well as non-investment grade securities - involve
substantial risks and are not suitable for all investors. Reports based on technical analysis centers on studying charts of a
stock's price movement and trading volume, as opposed to focusing on a company's fundamentals and as such, may
not match with a report on a company's fundamentals.
We do not undertake to advise you as to any change of our views expressed in this document. While we would
endeavor to update the information herein on a reasonable basis, Angel Broking, its subsidiaries and associated
companies, their directors and employees are under no obligation to update or keep the information current. Also there
may be regulatory, compliance, or other reasons that may prevent Angel Broking and affiliates from doing so.
Prospective investors and others are cautioned that any forward-looking statements are not predictions and may be
subject to change without notice.
Angel Broking Limited and affiliates, including the analyst who has issued this report, may, on the date of this report,
and from time to time, have long or short positions in, and buy or sell the securities of the companies mentioned herein
or engage in any other transaction involving such securities and earn brokerage or compensation or act as advisor or
have other potential conflict of interest with respect to company/ies mentioned herein or inconsistent with any
recommendation and related information and opinions.
Angel Broking Limited and affiliates may seek to provide or have engaged in providing corporate finance, investment
banking or other advisory services in a merger or specific transaction to the companies referred to in this report, as on
the date of this report or in the past.
Sebi Registration No : INB 010996539
For Private Circulation Only |
