Sensex closes at 19041, NIFTY at 5760 - Angel Broking

Yesterday, our benchmark indices opened slightly lower, in line with global peers. The bears' continue to have an upper hand and pessimism was seen in case of individual index counters. Overall, the markets ended the session with a half a percent cut. During the session, the Consumer Durables counters corrected heavily along with the Metal and IT stocks; whereas the Health Care and Oil & Gas sectors defended the market. The advance to decline ratio was in favor of declining counters. (A=967 D=1398) (Source-www.bseindia.com)

Formation

- The '20-week EMA' and the '20-day EMA' are placed at 19378/ 5875 and 19754/ 5991 levels, respectively.

- The '89-day EMA' and the '200-day SMA' are placed at 19443/ 5897 and 19095 / 5790, respectively.

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

- The weekly 'Bearish Engulfing' and the monthly 'Shooting Star' Japanese candlestick patterns are still intact.

Trading strategy:

For the third consecutive session, our benchmark indices posted a closing in the negative territory. During the session, indices breached the 61.8% Fibonacci retracement level of 19022 / 5764 and corrected towards the mentioned support level of 18870 / 5732. This level provided a decent support and as a result, indices bounced to eventually close near 19022 / 5764. Yesterday's price action has resulted in formation of candlestick pattern, which resembles a 'Spinning Top'. An occurrence of such pattern near support level indicates uncertainty among market participants. Hence, any sustainable move beyond yesterday's high of 19143 / 5793 may attract intraday buying interest in the market. In this scenario, indices may rally towards 19271 - 19395 / 5830 - 5869 levels. On the flipside, if indices sustain below 18870 / 5732, then it may slide towards 18673 - 5669.

Source : Equity Bulls

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