Technical Research | September 13, 2011
Daily Technical Report
Sensex (16502) / Nifty (4947)
Indices opened with nearly 2% downside gap and traded
Exhibit 1: Sensex Daily Chart
with a negative bias throughout the day to close marginally
above the support level of 16488 / 4942. On the sector
front, Consumer Durables, IT and Metal counters were
among the major losers. The advance decline ratio was in
favor of declining counters (A=875 D=1929). (Source -
Formation
• The breakdown of a “Rising Wedge” pattern is
confirmed on Daily chart.
• We are also observing a negative crossover in “RSI”
oscillator on the Daily chart.
Trading strategy:
Source: Falcon
As mentioned in our previous report, the “Rising Wedge”
pattern is now confirmed as the indices have broken and
closed below Friday’s low of
16830
/
5046. During
yesterday’s session, indices breached important support
level of
16488 /
4942 and have managed to close
marginally above it after registering a low of 16393 /
4911.Looking at the global indices although our
benchmark indices may open on a positive note, 16565 -
16620 / 4935 - 4985 remain important resistance levels
on the upside.On the other hand, if indices sustain below
yesterday’s low of 16393 / 4911 then they are likely to test
16318 - 16070 / 4890 - 4805 levels. Any move below
this, indices can test recent lows of 15765 / 4720.
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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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