The document provides a technical analysis of the Indian stock market indices Sensex and Nifty for the week of July 16, 2011. It summarizes that the indices declined over 1.5% for the week and are currently trading in a range between 18,326/5496 on the downside and 19,132/5740 on the upside. It notes that a break above or below this range would dictate the direction of the upcoming trend. The analysis also lists pivot levels for 50 Nifty stocks to watch in the coming week.
1. Technical Picks | July 16, 2011
Markets stuck in a range
Sensex (18562) / Nifty (5581)
In our previous Weekly report, we had mentioned that Exhibit 1: Nifty weekly chart
19132 / 5741 level would act as a strong resistance for the
markets. Further, we had mentioned that if on the lower side
indices violate 18682 / 5610 support level, then they may test
18527 - 18223 / 5558 - 5468 levels. The week started on a
pessimistic note and indices made a low of 18326 / 5496. The
Sensex ended with a marginal loss of 1.57%, whereas the Nifty
lost 1.41% vis-à-vis the previous week.
Pattern Formation Source: Falcon
On the Weekly chart, the downward sloping trend line,
joining the two significant highs of 21109 & 20665 / 6339 &
6181, remains a major resistance for the indices. This resistance
zone lies in the range of 19000 - 19132 / 5700 - 5740
Future Outlook
The current price action suggests that indices are trading in the
range of 19132 / 5740 on the upside and 18326 / 5496 on
the downside. Any breach on either side of the range would
dictate the direction of the trend. In the coming week if indices
cross 18810 / 5653 level, then they may test the upper band of
the range of 19132 / 5740. A weekly closing above 19132 /
5740 level would indicate a clear breakout on the upside. On
the other hand, if 18326 / 5496 level is violated, then indices
may test 17950 - 17805 / 5400 - 5350 levels.
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