Technical Research | September 28, 2011
Daily Technical Report
Sensex (16524) / Nifty (4971)
We witnessed a massive gap up opening in yesterday’s
Exhibit 1: Sensex Daily Chart
session mainly due to overnight positive sentiments in U.S.
and European markets. Our indices traded with positive
bias throughout the session to close marginally below 5000
mark. On the sector front, Realty, IT and Oil & Gas counters
were among the major gainers. The advance decline ratio
was strongly in favor of advancing counters (A=1873
Formation
• The “20 Day EMA” is placed at 16670 / 5010 level.
• The 61.8% Fibonacci retracement level of 17191 to
15801 / 5169 to 4758 is at 16660 / 5011 level.
Trading strategy:
As expected and mentioned in our previous report, indices
Source: Falcon
gradually moved towards 16368 - 16490 / 4930 - 4960
levels after sustaining above the high of 16210 / 4880
level. We are now observing that the “20 Day EMA” is
placed at 16670 / 5010 level which almost coincides with
61.8% Fibonacci retracement level of the fall from 17191 to
15801 / 5169 to 4758. Consequently, in the coming
trading session, there is a high probability that indices may
face some selling pressure while approaching this above
mentioned resistance level. Thus, we advise our short term
traders to book profits on their longs and adopt a stock
specific approach in coming trading session as indices are
heading towards this strong resistance zone. On the
downside, 16368 - 15996 / 4930 - 4868 levels may act as
support in coming trading session.
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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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