Sensex closes down at 18552 and NIFTY closes down at 5889 - Angel Broking

Yesterday, our benchmark indices opened marginally higher in-line mixed global cues. Subsequently, indices slipped into consolidation mode and traded within a narrow trading range for most part of the session. As the Rupee depreciated further, a correction towards the fag end led indices to close marginally in the negative territory. The IT, Power and FMCG counters outperformed our benchmark indices; whereas the Auto, Metal and Consumer Durables sectors corrected reasonably during the session. The advance to decline ratio was strongly in favor of declining counters. (A=952 D=1360) (Source-www.bseindia.com)

Formation

- The '20-week EMA' and the '89-Week EMA' are placed at 19232/ 5825 and 18458/ 5585 levels, respectively.

- The '89-day EMA' and the '200-day SMA' are placed at 19325/ 5854 and 19184Rs. / 5817, respectively.

- The weekly 'RSI-Smoothened' oscillators, the 'ADX (9) indicator and '5 & 20 EMA' are now signaling a negative crossover.

Trading strategy:

Yesterday, apart from the concluding hour, lackluster movement was seen during rest of the session. The entire day's price action was within Tuesday's range. Hence, the 'Long Legged Doji' Japanese candlestick pattern mentioned in our previous report is still intact. Since, there is no major change in the price structure, we reiterate our view that the pattern would be confirmed only if indices sustain above Tuesday's high of 18801 / 5666. In this case, indices may bounce towards 18890 - 19000 / 5705 - 5750 levels. On the flipside, the said pattern would be negated on a closing below the low of 18487 / 5570. In such scenario, indices may slide towards 18424 - 18325 / 5544 - 5500 levels. The coming session is expected to be volatile on account of June month derivative series expiry. Hence, we advise traders to remain light on positions and avoid taking undue risks.

Source : Equity Bulls

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