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12 September 2012

September 11, 2012-EDEL -Edelweiss Technical Reflection (ETR)


Edelweiss Technical Reflection (ETR)
    It was a lethargic day at the bourses as markets failed to build on the strong momentum coming off from late last week's rally. The benchmark index opened flat and traded in a narrow range of 26 points throughout the day, to finally settle with a meager gain of 4 points. Market internals indicate an average turnover and a marginally favorable A/D ratio. There was a minor uptick in volatility with India VIX rising from record low levels. Momentum indicators are trading with a positive bias on the hourly and daily charts suggesting upside, however the price action remains suspect due to the strong resistances at 5375 / 5400. We prefer to remain neutral at the current juncture and wait for key pivots of 5434 / 5449 to be taken out for any long trades, or, a breach below 5300 to trigger shorts.
    It was a mixed bag day on the bourses for the sectoral indices with gains coming from Healthcare (+0.95%), Metal (+0.71%) and Autos (+0.49%); whereas mild losses were seen in Realty (-0.78%), Banking (-0.77%) and Power (-0.44%). The broader market indices fared a bit better than the frontline index with Mid-cap index gaining 0.28% and the Small-cap index gained 0.70%.
    Bullish Setups: TCS, RIL, DLF, HEXW, HPCL, BATA
    Bearish Setups: LT, HDFC, TTMT, HUVR, HDFCB, TGBL

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