Technical Research | August 30, 2011
Daily Technical Report
Sensex (16416) / Nifty (4920)
Markets opened on an optimistic note and traded with
Exhibit 1: Sensex Daily Chart
strong positive bias throughout the day to give a close well
above 16400 / 4900 mark. On the sector front, IT, Metal
and Realty counters were among the major gainers. The
advance decline ratio was in favor of advancing counters
Formation
The momentum oscillator viz. the “RSI
-
Smoothened” has given a positive crossover on the
Daily chart.
We are also observing a Trend Line break out on
Daily chart.
Source: Falcon
Trading strategy:
Finally after a brutal fall of nearly 6 - 8 trading sessions,
bulls got something to cheer for as our markets witnessed a
strong upside rally of nearly 3.50 % in yesterday’s session.
We have been mentioning in our previous reports that we
are observing an oversold position of the “RSI
-
Smoothened” oscillator which suggests a possibility of a
short term bounce. We are now witnessing a positive
crossover in this oscillator along with a trend line break out.
Looking at the global indices we expect the indices to open
significantly above yesterday’s high of 16462 / 4935.If
indices manage to sustain above yesterday’s high then ,they
are likely to rally towards 16550 - 16750 / 4966 - 5050
levels. On the other hand, 16178 - 16068 / 4844 - 4806
levels may act as support in coming trading sessions.
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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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