Technical Research | September 16, 2011
Daily Technical Report
Sensex (16877) / Nifty (5076)
Market opened marginally higher and traded with extreme
Exhibit 1: Sensex Daily Chart
choppiness throught out the trading session to close
marginally above the initial opening level. On the sector
front, Realty, IT, Teck and Banking counters were among
the major gainers whereas Capital Goods were among the
losers. The advance decline ratio was in favor of advancing
Formation
• We are observing a “Downward Sloping Trend Line” on
Daily chart.
Trading strategy:
Indices opened on an optimistic note but failed to sustain
Source: Falcon
during the initial part and corrected to test support level of
Note: As RBI monetary policy is going to be announced
16550 / 4960 level. However, we witnessed a strong surge
today, we advise traders to stay light on their positions
in the prices during the later part of the session which led
and trade with strict stoploss.
indices higher to register a high of 16922 / 5091. We are
now observing a “Downward Sloping Trend Line” joining
two highs of 18945 and 17212 / 5702 and 5169. The
trend line resistance level would come around 16930 /
5090 which also coincides with yesterday’s high. Therefore,
if indices manage to break and sustain above yesterday’s
high then there is likelihood that we may witness a break
out from this mentioned trend line. In this case, indices may
rally towards 17212 / 5169 level. On the other hand,
yesterday’s high also coincides with
61.8% Fibonacci
retracement level of the fall from 17212 to 16374 / 5169
to 4911 levels which may act as strong resistance. In such
scenario, indices may test support levels of 16766 - 16545
/ 5030 - 4967.
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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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