Technical Research | September 19, 2011
Daily Technical Report
Sensex (16934) / Nifty (5084)
Market opened higher in-line with positive global cues and
Exhibit 1: Sensex Daily Chart
traded with extrme volatility due to announcement of “RBI
Monetary Policy”. Subsequently, indices closed marginally
above “Downward Sloping Trend Line” mentioned in our
previous report. On the sector front, FMCG, IT and Teck
counters were among the major losers whereas PSU, Power
and Realty were among the gainers. The advance decline
ratio was in favor of declining counters (A=1337 D=1460).
Formation
• We reiterate that Indices face a “Horizontal Line”
resistance at 17300 / 5177 level which was the crucial
swing low made in February 2011.
• Also, the “Spinning Top” formation mentioned in our
last report is still intact as the high of 17212 / 5169 has
not been violated.
• On the Daily chart, we are observing a “Downward
Source: Falcon
sloping trend line” joining two highs of 18945 and
17212 / 5702 and 5169.
Trading strategy:
Markets opened lower due to negativity across global
On the downside, last week low of 16374 / 4911 level
indices. Our benchmark indices registered a Weekly low of
would act as a support and a breach of this level would
16374 / 4911 after breaching 16488 / 4942 level in the
reinforce selling pressure. In such a scenario, Indices may
last week. However, indices failed to sustain below the low
test recent bottom of 15765 / 4720. Broadly speaking, for
of the “Spinning Top” as they bounced twice from the
the coming week, we expect the trading range to be
Weekly low. We reiterate our view that as long as the high
between 17212 - 16374 / 5169 - 4911 levels.
of the “Spinning Top” (17212 / 5169) is not violated we
may witness selling pressure near this resistance levels. Any
move beyond 17212 / 5169 level would lead to negation
of the pattern and then indices may rally towards 17250 -
17600 / 5200 - 5300 levels.
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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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