Technical Research | October 03, 2011
Daily Technical Report
Sensex (16454) / Nifty (4943)
Markets opened with a downside gap on Friday’s session
Exhibit 1: Sensex Daily Chart
and traded with high volatility during the first half. However,
during the second half selling pressure intensified which
dragged indices near intraday support levels of 16400 /
4920. On the sector front, Metal, Realty and Banking
counters were among the major losers whereas Consumer
Durables ended on a gaining side. The advance decline
ratio was strongly in favor of declining counters (A=1019
Formation
• The “20 Day EMA” is placed at 16670 / 5010 level.
• The 61.8% Fibonacci retracement level of 17191 to
15801 / 5169 to 4758 is at 16660 / 5011 level.
Source: Falcon
Trading strategy:
Broadly speaking, indices are stuck in a trading range of
15756 to 17250 / 4720 to 5200. On the Daily chart, we
are now observing that “20 EMA” and 61.8% Fibonacci
retracement level of the fall from 17191 to 15801 / 5169
to 4758 indicate a similar resistance level. This level is at
16670 / 5010. Going forward, selling pressure is likely to
intensify on the violation of Thursday’s low of 16316 /
4906. Subsequently, indices are likely to drift towards
16000 - 15765 / 4800 - 4720 levels. A breach of the
crucial support level at 15765 /4720 would lead to a
further fall towards 15650 - 15330 / 4675 - 4540 levels.
On the upside, 16756 - 17000 / 5034 - 5110 levels are
likely to act as a resistance in coming week.
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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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