For Private Circulation Only | 1 Technical Research | December 22, 2011 Yesterday, we witnessed a strong gap up opening mainly due to positive cues from global indices. The positive momentum stayed throughout the day and Indices closed almost at the highest point of the day. On the s ectoral front, Banking, Consumer Durables and Oil & Gas sectors contributed heavily in yesterday’s rally. There was no sector on the losing side. The advance to decline ratio was s trongly in favor of dec lining count ers . (A = 1658 D= 1097). (S our ce –www.bseindi a.com) Formation • O n the Daily c hart, we are w itnes s ing a posit ive crossover in “RSI” momentum oscillator. • T he 20 EMA on the daily c hart is placed at 1602 0 /4800. T rad ing s trategy: Indices opened on an optimistic note and crossed key res ist ance leve l of 15 45 0 / 46 38 d uring the latter part of the s es s ion to ra lly towards 15 750 / 47 30. We are now ob s erving a positive cross over in d ail y “ R S I” momentum oscillator. The positive impact of this crossover may be seen if indices manage to sustain above yesterday’s high of 15727 / 470 7. In this scenario, markets are likely to rally towards 15850 / 475 4 l ev el and may eve n test the 20 EMA at 16020 / 4800. O n the downside, 15450 – 15135 /4638 – 4531 levels are likely to act as support in coming trad ing sessions. Daily Technical Report S ensex 15685 / NIFTY 4693 E xhibit 1: Ni fty Daily Chart S ource: F alconActionabl e points: View Positive B uy ab ove 47 07 E xpect ed targ et 47 54 – 4800 S upport levels 463 8 – 45 31
