For Private Circulation Only|
Technical Research |
November 1, 2011
We witnessed a flat opening in yesterday’s session and thenindices moved in a narrow range to close marginally abovethe support level of 17671 / 5322. On the sector front, Oil& Gas and Metal counters were among the major loserswhereas FMCG and Banking counters ended on a positivenote. The advance decline ratio was marginally in favor ofadvancing counters (A=1485 D=1351).
(Source – www.bseindia.com)
• On the Weekly chart, the “Downward Sloping TrendLine” is placed around the 18150 / 5475 level.• The Daily “200 SMA” is placed at the 18020 / 5410level.• We are witnessing a downside gap area of 17671 to17350 / 5322 to 5219 created on October 28, 2011.
In our earlier report, we had stated that the “Narrow range”body formation on the Daily chart indicates possibility of aconsolidation or a minor pull back. As expected, yesterdayindices traded in a narrow range throughout the sessionand closed marginally above the support level of 17671 / 5322. We reiterate our view that indices may face supplypressure near 18020 – 18150 / 5410 – 5475 levels.Considering the Global clues today morning, it is likely thatour indices open in the red. Thus, a sustainable move belowyesterday’s low of 17668 / 5314 level may result in a minorcorrection to fill the gap area of 17671 to 17350 / 5322 to5219 created on October 28, 2011.
Daily Technical Report
Sensex 17705 / NIFTY 5327
Exhibit 1: Nifty Daily Chart
View NeutralResistance Levels 5410 – 5475Support Levels 5314 – 5219