Sensex closes at 19568 and NIFTY closes at 5924 - Angel Broking

Yesterday, once again we witnessed a flat opening but subsequently the Nifty slipped slightly below the psychological level of 5900 during the initial hour of the trade. However, post mid-session indices recovered from the lows and traded with narrow trading range for rest of the session. During the session, the Oil & Gas and the Realty counters defended our benchmark indices; whereas the IT and the FMCG sectors remained under pressure throughout the session. The advance to decline ratio was marginally in favor of declining counters. (A=1083 D=1256)(Source-www.bseindia.com)

Formation

- The '20-week EMA' and the '20-day EMA' are placed at 19410/ 5874 and 19900/ 6041 levels, respectively.

- The '89-day EMA' and the '200-day SMA' are placed at 19443/ 5895 and 19048 / 5776, respectively.

- The weekly 'RSI' and 'Stochastic' momentum oscillators are negatively poised.

- The 'Bearish Engulfing' Japanese candlestick pattern on weekly chart is still intact.

- The monthly chart now depicts a 'Shooting Star' Japanese candlestick pattern.

Trading strategy:

In our previous report, we had mentioned a strong support zone of 'Downward Sloping Trend Line' and daily '89 EMA' placed at 19443 / 5895. Yesterday, during the initial hour of the session, Nifty sneaked marginally below 5895 but immediately bounced back to eventually close half a percent higher from the day's low (Sensex bounced from 19451). Considering yesterday's price action, we are of the opinion that any sustainable move beyond yesterday's high of 19605 / 5935 may push indices further higher to test 19695 - 19743 / 5965 - 5982 levels. On the downside, we reiterate our view that a closing below 19443 / 5895 would trigger strong pessimism in the market. In that case, indices may slide towards 19360 / 5850 level.

Source : Equity Bulls

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