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Technical Research |
November 2, 2011
Yesterday, indices opened lower in-line with weak globalcues and continued to remain under pressure as the dayprogressed. Due to continuous selling pressure indices thendrifted towards the support level of 17350 / 5219. On thesector front, Realty, Auto and Banking counters were amongthe major loosers. There was no sector in the positiveterritory. The advance decline ratio was strongly in favor ofdeclining counters (A=1177 D=1609).
(Source – www.bseindia.com)
• 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.
We witnessed a pessimistic opening in yesterday’s sessionmainly due to negativity across global indices. As expected,we witnessed a corrective movement after the violation ofMonday’s low of 17668 / 5314 level. Subsequently,markets drifted lower to fill the gap area of 17671 to17350 / 5322 to 5219 created on October 28, 2011.Going forward, 17350 / 5219 remains to be a decentsupport for the market. A move below this support levelmay intensify further selling pressure which may dragindices lower to test 17273 – 17188 / 5196 – 5160 levels.On the upside, 17540 – 17671 / 5275 – 5322 levels mayact as resistance in coming trading session.
Daily Technical Report
Sensex 17481 / NIFTY 5258
Exhibit 1: Nifty Daily Chart
View NeutralResistance Levels 5275 - 5322Support Levels 5219 - 5160