Technical Research | September 23, 2011
Daily Technical Report
Sensex (16361) / Nifty (4924)
Yesterday’s session began with a massive gap down
Exhibit 1: Sensex Daily Chart
opening mainly due to weak global cues. This downside
gap remained unfilled throughout the day and indices
plunged to test support level of 16300 / 4900. On the
sector front, Realty, Metal and Oil & Gas counters were
among the major losers. The advance decline ratio was
strongly in favor of declining counters (A=606 D=2235).
Formation
• The Daily chart depicts a “Symmetrical Triangle” pattern
breakdown on closing basis with higher volumes.
• We are observing a negative crossover in momentum
oscillator viz., the RSI and the Stochastic.
Trading strategy:
Source: Falcon
After a strong gap down opening the benchmark indices
continued to drift downwards as the day progressed. This
mammoth intraday fall of 4% led to a breakdown from
“Symmetrical Triangle” pattern at 16700 / 5019 level. In
addition, we are also observing a negative crossover in RSI
and Stochastic oscillators which may result in a sharp fall in
our benchmark indices. Consequently, Indices are likely to
slide further down and may test 16000 - 15765 / 4800 -
4720 levels. The said pattern will ONLY be negated if we
witness a closing above yesterday’s high of 16834 /5060.
On the upside, 16700 - 16834 / 5019 - 5060 levels may
act as 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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