Sensex closes at 19748 and NIFTY closes at 5886 - Angel Broking

On Friday, our benchmark indices opened with half a percent gain as indicated by the SGX nifty. However, just before the midsession, indices witnessed immense selling pressure and as a result eventually closed almost at the lowest point of the day. The high beta sectors like, Metal, Realty and PSU Banking witnessed a sharp correction; whereas the Consumer Durable along with the defensive sectors like, Healthcare and FMCG somehow managed to close in the green. The Advance to Decline ratio was strongly in favor of declining counters. (A=835 D=1433) (Source-www.bseindia.com )

- The '89-day EMA' and the '89-week EMA' are placed at 19486/ 5881 and 18594 / 5622 levels, respectively.

- The '20-day EMA' and the '20-week EMA' are placed at 19775 / 5931 and 19489 / 5882, respectively.

- The daily 'RSI-Smoothened' oscillator and the 'ADX (9)' indicator are signaling a negative crossover.

- The 78.60% Fibonacci retracement level of the fall from 20444 / 6229 to 18467/ 5566 is placed at 20021 / 6088.

Our benchmark indices have broken their winning streak in the fifth week. On Wednesday, we witnessed a breakdown from the 'Rising Wedge' pattern below 20065 / 6004. A move below last week's low of 19649 / 5910 now clearly indicates that going forward the trading strategy should now be "Sell on Rise". In addition, the negative placement in the daily 'RSI-Smoothened' oscillator and the 'ADX (9)' indicator suggests possibility of near term weakness. Also, this week's price action has now confirmed the 'Lower Top' on the weekly chart. This is a sign of caution for the bulls and adds an important point in the overall analysis. Going forward, we advise traders to initiate fresh short positions on every rise towards the 6007 mark. The stop loss for the trade would be at 6100. A break of the weekly low of 19699 / 5869, would augment further negative momentum and may result in a slide towards 19485 - 19185 / 5800 - 5760 or lower levels. It would be important to note that the RBI Monetary policy would be declared on Tuesday and volatility is likely to increase in the first half of the week.

Source : Equity Bulls

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