Technical Research | June 21, 2011
Daily Technical Report
Sensex (17507) / Nifty (5258)
Markets opened flat but selling intensified as the day progressed
Trading strategy:
which led the indices to close near days low. On the sector
In view of the above formation in coming trading session if
front, none of the sector was in green. Realty, Oil and Gas,
indices trade below 17314 / 5195 level then they are likely to
IT and Auto contributed for the fall in the indices. The advance
test 17295 - 17070 / 5177 - 5100 levels. However a bounce
decline ratio was in favor of declining counters
up to 17716 - 17844 / 5321 - 5360 cannot be ruled out as the
(A=576 D=2314). (Source - Iris software)
hourly chart is in an oversold zone.
Formation
Exhibit 1: Sensex Daily Chart
On the daily chart, we are observing a Head and Shoulder
breakdown. This suggests weakness going ahead. The projected
H
target for the said pattern is at around 16300 / 4800 level.
S
S
However, on the downside, before testing the above mentioned
level, indices have series of supports level. The neckline of the
pattern which is at 17800 / 5350 remains the resistance level.
Only a move above this level would negate the pattern.
Source: Falcon
Stock Recommendations:
Exhibit 2: Ambuja Cement (June Futures) - Daily Chart
Stock - Ambuja Cement (June Futures)
Action - Sell
Range
:
`124.50 - 125.20
Stop Loss :
`126.80
Target
:
`117.50
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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