Technical Research | October 04, 2011
Daily Technical Report
Sensex (16151) / Nifty (4850)
We witnessed a gap down opening in-line with global cues
Exhibit 1: Sensex Daily Chart
and traded in a narrow range to close in the negative
territory. On the sector front, Realty, Metal and Banking
counters were among the major losers. The advance
decline ratio was strongly in favor of declining counters
Formation
• We are witnessing a gap area of 16404 to 16256 /
4924 to 4879 on the Daily chart.
Trading strategy:
Indices opened significantly lower and traded in a narrow
range of 16255 to 16056 / 4879 to 4823. We observed
Source: Falcon
that indices were consistently facing strong selling pressure
near the high it registered in the morning. Hence, going
forward, yesterday’s downside gap of 16404 to 16256 /
4924 to 4879 may act as a strong resistance in coming
trading sessions. Looking at the global clues, it is likely that
our markets may open with a negative bias. On the
downside, yesterday’s low of 16056 / 4823 may provide
support in coming session. Any violation of this level,
indices are likely to drift towards 15756 / 4720 level.
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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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