19754 / 5971 levels to act as resistance for the day - Angel Broking

Yesterday, indices opened on a flat note as suggested by SGX Nifty and traded in a narrow range throughout the session to close near the initial opening level. During the day, Realty and Capital goods counters ended on the gaining side whereas Consumer Durables and IT sectors ended in the negative territory. The advance to decline ratio was in marginally in favor of declining counters (A=1395 D=1474) (Source -www.bseindia.com).

The '20-day EMA' and the '20-week EMA' are placed at 19430 / 5880 and 19224 / 5826 levels, respectively.

The weekly chart exhibits a 'Bullish Engulfing' pattern but the monthly chart exhibits a 'Bearish Engulfing' pattern.

The daily 'ADX (14)' indicator and the weekly 'Stochastic' momentum oscillator is now signaling a positive crossover.

The level of the weekly 'RSI' momentum oscillator has now bounced back sharply to 58.20 after dropping below the 50 mark.

Indices have closed above the 'Downward Sloping Trend Line', drawn by joining two significant highs of 21109 / 6339 (high of November 05, 2010 weekly candle) and 19137 / 5816 (high of October 05, 2012 weekly candle).

Indices opened on a flat note and thereafter we witnessed lackluster activity throughout the session. The indices precisely tested the mentioned resistance level of 19742 / 5971 levels during the day. We are now witnessing a narrow range body formation on the daily chart indicating indecisiveness prevailing at current levels. A move below yesterday's low of 19603 / 5930 would trigger short term pullback in the index. Moreover the momentum oscillators on the hourly chart are placed well inside the overbought territory. Hence if indices trade convincingly below the 19603 / 5930 mark then we expect a fall towards the 19498 - 19430 / 5900 - 5880 levels. On the upside 19754 / 5971 levels are likely to act as resistance for the day.

Source : Equity Bulls

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