Technical Research | November 18, 2011
Daily Technical Report
Sensex (16462) / NIFTY (4935)
Exhibit 1: Nifty Daily Chart
Yesterday, markets opened on a flat note and then for the
third consecutive session, witnessed immense selling
pressure which led indices to close marginally above 4900
mark. On the sectoral front, the Oil & Gas, Power and
Metal counters were among the major losers. There was no
sector in the positive territory. The advance decline ratio was
strongly in favor of declining counters (A=897 D=1927).
Formation
• Oscillators in Hourly and Daily charts are placed in
extreme oversold territory.
Source: Iris
Actionable points:
Trading strategy:
After a flat opening, markets tumbled for yet another
View
Neutral
session due to selling pressure during the second half of the
Resistance levels
5037 - 5085
session. We observed immense negative momentum post
Support levels
4890 - 4860
violation of Wednesday’s low of 16641 / 4989, which also
negated "Bullish Hammer" pattern mentioned in our earlier
report. Going forward, indices are likely to drift towards the
next support levels 16300 - 16150 / 4890 - 4860, which
coincides with the 78.4% Fibonacci retracement level of the
rise 15745 - 17900 / 4728 - 5400. However, looking at
the oversold condition of momentum oscillators in Hourly
and Daily chart, the possibility of a minor bounce cannot be
ruled out. On the upside, yesterday's high of 16807 / 5037
may act as strong resistance. Any move above this would
push indices higher to test 16950 / 5085.
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Technical Research | November 18, 2011
Bank Nifty Outlook - (8931)
Exhibit 2: Bank Nifty Daily Chart
Bank nifty opened on a flat note and traded in a narrow
range during the first half of the session. However, during
the second half, extreme selling pressure was witnessed
and the index to closed below the “Bullish doji star” and
hence, negated the said pattern. Going forward, if Bank
Nifty sustains below yesterday’s low of 8900, then it is
likely to test the October lows of 8626 - 8560 levels.
On the upside, 9146 level may act as resistance level for
the day.
Actionable points:
View
Neutral
Resistance Level
9146
Support Levels
8626 - 8560
Source: Iris
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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: 022-3952 6600
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