Technical Research | September 26, 2011
Daily Technical Report
Sensex (16162) / Nifty (4868)
Markets opened with a downside gap and a selling pressue
Exhibit 1: Sensex Daily Chart
was continued to intensify near every intraday resistance
level. Hence, indices closed well below 4900 mark. On the
sector front, Metal, Capital Goods and Auto counters were
among the major losers. The advance decline ratio was
strongly in favor of declining counters (A=986 D=1805).
Formation
• The “Spinning Top” formation mentioned in our earlier
reports is still intact as the high of 17212 / 5169 has
not been violated.
• The Daily chart depicts a “Symmetrical Triangle” pattern
breakdown on closing basis with higher volumes.
Source: Falcon
Trading strategy:
While the view is clearly negative considering the Weekly
Looking at the Weekly chart, it can be concluded that
indices have failed to cross the major resistance zone due to
charts, the Daily candle suggests the probability of a
a combination of the “Horizontal Line” resistance and the
temporary pullback rally towards 16490 - 16620 / 4960 -
“Spinning Top” formation. Consequently, indices drifted
5000 only if indices manage to cross and sustain above
lower due to immense selling pressure near their resistance
Friday’s high of 16368 / 4930 level.
zone which ultimately resulted in the breakdown of a
Traders are suggested to trade with strict stop losses as
“Symmetrical Triangle” pattern. This pattern indicates that
volatility is expected to increase in the coming week due to
indices are likely to head towards the recent bottom of
expiry of derivative contracts.
15765 / 4720 level. Selling pressure is likely to intensify on
violation of this important point; and if indices manage to
sustain below 15765 / 4720, then they are likely to drift
towards the next support levels of 15650 - 15330 / 4675 -
4540.
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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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