Technical Research | June 6, 2011
Daily Technical Report
Sensex (18376) / Nifty (5517)
Markets opened higher witnessed a rally which was short lived
weeks high. However, on the daily chart, there is no confirmation
as selling emerged at higher level, which dragged the indices
of a higher top higher bottom formation. Hence, we are of the
to close in red. On the sectoral front, Oil &Gas, Metal, & PSU
opinion that indices may witness a range-bound activity at
contributed to the fall. On the other hand Consumer Good &
17786 - 18673 / 5328 - 5605 levels. Any decisive breach and
Consumer Durable ended up with marginal gains. The advance
close above the 18673 / 5605 level could continue the upward
decline ratio was in favour of declining counters (A=1306
momentum, and indices may test 18798 - 19037 / 5636 -
D=1485). (Source - Iris software)
5709 levels. On the downside, 18200 - 17786 / 5458 - 5328
levels remains a crucial support for the week.
Formation
Exhibit 1: Sensex Weekly Chart
On the Weekly chart, after a candlestick pattern that
resembles a "Dragonfly Doji", prices have closed above the
previous week high. This indicates that the bias is on the positive
side so long as the low of the Doji 17786 / 5328 holds.
On the Daily chart, prices have retraced by 38% from the
prior downfall from 19811 to 17786 / 5944 to 5328. As of
now, the higher top higher bottom structure does not exist on
the daily chart.
Source: Falcon
Trading strategy:
Broadly, after a "Dragonfly Doji" on the weekly chart, prices
have confirmed a higher high by closing above the previous
Stock Recommendations:
Exhibit 2: BPCL (June Futures) - Hourly Chart
Stock - BPCL (June Futures)
Action - SELL
Range
:
`629.00 - 630.00
Stop Loss :
`634.55
Target
:
`615.00
Source: Falcon
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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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