Sensex closes at 18705 - Angel Broking

On Tuesday, our benchmark indices opened lower in-line with weak global cues. Subsequently, indices traded within the narrow range throughout the session and eventually closed marginally in the positive territory. The Oil & Gas, Realty and Capital Goods counters were among the major losers whereas Consumer Durables, FMCG and Teck stocks ended with some gains. The advance to decline ratio was in favor of declining counters (A=1290 D=1459) (Source-www.bseindia.com)

The '20-day EMA' and the '20-week EMA' are placed at 19121 / 5775 and 19146 / 5796 levels, respectively. The '200 Day SMA' is placed at 18536 / 5621.

The 'Lower Top Lower Bottom' formation on weekly chart is confirmed for the first time after January 14, 2011.

We are witnessing a 'Downward Sloping' trend line support drawn by joining the lows of December 18, 2012 and March 04, 2013.

Indices opened lower and precisely tested the mentioned 'Downward Sloping Trend Line' for yet another session. As expected, indices found decent support near this trend line and bounced back from the lows to close marginally on the higher side. The daily 'Stochastic' oscillator is placed well inside the oversold territory and now signaling a positive crossover. Hence, going forward, we may witness a bounce back once indices sustain above Tuesday's high of 18759 / 5655. In this case, indices may bounce towards 18875 - 18950 / 5695 - 5720 levels. On the flip side Tuesday's low of 18612 / 5612 may provide decent support for the market. Traders are advised to remain cautious and place strict stop losses as the March derivative expiry may spring up some surprising moves in the index.

Source : Equity Bulls

Keywords