Sensex closes at 19246 and Nifty closes at 5822 - Angel Broking

Yesterday, our benchmark indices opened quietly on the back of mixed global cues and then traded lower to post a low of 19100 / 5777 during the first half. However, a decent recovery during the second half led the Indices to close with very minor gains. During the session, the Consumer Durables, Metal and Realty counters traded with a positive bias; whereas the Auto and Power sectors remained under pressure. The advance to decline ratio was marginally in favor of advancing counters. (A=1261 D=1113) (Source-www.bseindia.com)

Formation

- The '20-week EMA' and the '20-day EMA' are placed at 19359/ 5869 and 19500/ 5909 levels, respectively.

- The '89-day EMA' and the '200-day SMA' are placed at 19417/ 5885 and 19128 -/ 5800, respectively.

- The daily 'RSI' and 'Stochastic' momentum oscillators are signaling a positive crossover.

- The Monthly 'Shooting Star' Japanese candlestick pattern has been activated.

- The daily chart now depicts a bullish 'Island Reversal' pattern.

Trading strategy:

Yesterday, although indices gradually managed to inch higher during the second half, the overall price activity was within a narrow range. Since, there is no major change in the price structure; we continue to mention that 19459 - 19417 / 5863 - 5885 levels would act as strong and important resistance for our market. Only a closing beyond these levels would indicate the possibility of buying interest among market participants. In today's trading session the markets are likely to open with a downside gap on the back of important announcements by the US FED and weak global sentiments. Going forward, any sustainable move below 19084 / 5770 would result in the breach of crucial support levels and would trigger immense pessimism in the market. In this scenario, indices may correct towards 18952 - 18895 / 5739 - 5701 levels.

Source : Equity Bulls

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