Technical Research | October 05, 2011
Daily Technical Report
Sensex (15865) / Nifty (4772)
Markets opened marginal lower and moved towards the
Exhibit 1: Sensex Daily Chart
mentioned gap area during the first half. We observed
immense selling pressure near this resistance zone which
dragged indices to test 15756 / 4720 level. On the sector
front, Banking, Auto and PSU counters were among the
major losers whereas Capital Goods sector ended with a
marginal gain. The advance decline ratio was strongly in
favor of declining counters (A=985 D=1762). (Source -
Formation
• No specific formation is seen on the chart.
Trading strategy:
Yesterday during the second half, strong selling pressure
Source: Falcon
was observed near the mentioned resistance zone of 16404
to 16256 / 4924 to 4879. This dragged indices sharply
towards the recent bottom of 15756 / 4720. However,
indices managed to bounce from this support level in
yesterday’s session and closed below 16000 / 4800 mark.
Going forward, we reiterate that 15756 / 4720 level is
likely to act as crucial support level. Any sustainable move
below this level would result in a further fall and can take
indices to test lower levels of 15650 - 15330 / 4675 -
4540 levels. On the upside, the gap area of 16404 to
16256 / 4924 to 4879 is likely to act as a strong resistance
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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